Catalonia leads the loss of contracts and the rise in unemployment in August
Across Spain, jobs were also lost and unemployment increased.
BarcelonaThe labor market is showing signs of slackening in August, coinciding with the end of the summer season. Catalonia was the autonomous community that lost the most jobs last month and where unemployment increased the most, as confirmed by data published Tuesday by the Ministry of Social Security and the Ministry of Labor.
Specifically, the number of members fell by 63,562 people compared to July, a reduction of 1.62%, After more than half a year of record employment figures. Thus, the total number of active workers in Catalonia stands at 3,848,783, 77,060 more than a year ago. The Secretary of Labor of the Generalitat (Catalan Government), Paco Ramos, emphasized in his assessment of the data that this month-on-month decline in Social Security affiliation is "common" in August and that year-on-year growth maintains the upward trend that began four years ago. "This is the best record of affiliations for an August in the historical series," he said.
Regarding unemployment, in August this indicator added 7,942 unemployed people, an increase of 2.49% compared to the previous month. Thus, there are now 327,365 people registered with employment services in Catalonia who are looking for work, 8,625 fewer than last year. In fact, it's the lowest unemployment figure for a month of August since 2007, before the outbreak of the Great Recession. In this regard, Ramos also noted that unemployment growth in August was slightly lower than that recorded in the same month last year, when it increased by 8,707 people.
Across Spain, the labor market trend was also downward. Months of record highs in Social Security affiliation gave way to the destruction of 199,300 contracts, a 0.91% reduction, which brings the country's labor force to 21,666,203 people in August. Meanwhile, registered unemployment increased by 21,905, so there are now 2,426,511 unemployed people in Spain.
Second Vice President and Minister of Labor and Social Economy, Yolanda Díaz, attributed the rise in unemployment in August to seasonality and emphasized that this increase is 34% lower than the average rise in unemployment over the last 24 years. In a video assessing the data, she noted that this is a month in which employment historically declines, as the end of summer marks the end of many jobs linked to this season. However, the minister emphasized that this year's increase in August is "very different" from previous years, "thanks to the results of the labor reform and public employment policies."
The weight of education
By economic sector in Catalonia, the sector with the largest increase in unemployment in August was services (+7,097), attributed to the termination of contracts linked to the tourist season. In industry, this increase was 645 people, while in construction it was 424. In contrast, in agriculture, the job losses at the end of the summer were not yet as noticeable, and unemployment fell by 40 people.
The main culprit of job losses, both in Catalonia and across the country, was education: Membership in this sector fell by 23,391 in the Principality, a 9.8% drop compared to July. There were also sharp declines in membership in the arts, recreational, and entertainment sectors (-8,309 people and -9.3%).
Looking at the Catalan regions, Barcelona also led the Spanish increase in unemployment, always in absolute terms. There were 5,970 new jobless cases, a 2.5% increase that explains the overall performance of the labor market in Catalonia. Unemployment rose throughout the territory, as this increase was repeated—to a lesser extent—in Tarragona (+827 people), Girona (+733), and Lleida (+412).
Despite the shock at the end of this summer, the Secretary of Labor of the Generalitat, Paco Ramos, has remained optimistic about the goal of once again reaching above 3.9 million registered workers in Catalonia by 2025, trusting that the good performance of other sectors will compensate for this from September onwards.