Employment Minister Escriva revised his expectations regarding job growth in Spain. In mid-June, the minister spoke of a recovery of 150,000 jobs, now his expectation for this month is 200,000 new jobs.
The minister again emphasised the importance of this positive recovery in the labour market. With an increase of 200,000 jobs in June, the active labour force in Spain is back to the June level before the corona pandemic.
Job growth is ‘very intense’
“A year ago, several agencies predicted the unemployment rate in Spain would rise above 20%. Now it looks like the unemployment rate will be close to that of the pre-pandemic period,” Escriva said. The minister called the recovery in the labour market “very intense and extremely dynamic in the sectors that have been hit by the restrictions in recent times, such as the catering industry”.
Earlier this month, Escrivá reported the number of workers on temporary unemployment benefits (ERTE) had fallen to 470,000. The figure was more than 3.6 million a year ago. Now that number has decreased further to 300,000 employees temporarily out of work. These employees mainly work in the aviation sector, the catering industry, the recreation sector, nightlife and travel agencies.
Retraining
The minister foresees the unemployment rate will have fallen further by the end of the summer. They will also decide in September whether or not to extend the ERTE arrangements. Escrivá thinks around 150,000 employees with ERTE are at companies already in dire straits before the start of the corona pandemic.
For employees still on the ERTE scheme at the end of the summer, the government will look into retraining options.
