Spanish Unemployment Drops For The First Time Since February: 89,849 People Find A Job In July

Spain has highest proportion of contracts of 6 months or less

In a month marked by the end of the confinement and the state of alarm, the number of unemployed fell in July by 89,849 compared to June, the first decline since the beginning of the pandemic and the largest since 1997 for that mont. Furthermore, the average of Social Security affiliation stood at 18,785,554, which is 161,217 more than in June, the largest monthly increase since 2005 and the third consecutive month of recovery from the coronavirus impact.

In July, 712,000 people were removed from temporary layoffs leaving a total of 1.11 million workers with their contracts totally or partially suspended. An average of 23,000 workers per day have left this situation in , which means that two out of three affected by ERTEs have already returned to activity.

The Ministry of Inclusion, Social Security and Migration reported on Tuesday that of the total number of workers affected by an ERTE in July, 932,609 were due to force majeure and 185,933 to other causes.

Finally, analysing the data between 12 March and 30 April, it can be seen that 947,896 jobs were destroyed, most of them temporary. Of these, a total of 277,485 jobs have already been recovered between 1 May and the last day of July. Therefore, 670,411 jobs that have disappeared since the beginning of the pandemic have yet to be recovered.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.