Employment will be destroyed in November and will fully impact the negotiations to form a Government
The slowdown is already affecting the spanish workers. The labor market begins to suffer turbulence Although the economy continues to grow at a rate close to 2%. Although the Government clings to the fact that membership has grown in October, the truth is that unemployment has increased by almost 100,000 people, but businessmen and experts see an even bleak future.
Experts warn that the bad labor data for October are not a parenthesis, but that the trend will continue in the future. The study service of the Savings Bank Foundation (Funcas) expects the number of Social Security affiliates to decrease by 31,000 people in gross terms in November, a figure that would increase to 34,000 in seasonally adjusted figures.
These data, if confirmed, would be known at the beginning of December, after the general elections of November 10. And they would influence the conversations that the different formations have to form a Government and put an end to a situation of political paralysis that has no precedent in democracy (except in 2016).
Meanwhile, the pin to which the Government clings to justify that the labor market is not beginning to suffer a crisis is very weak. The employer CEOE warns in its report about the latest unemployment, hiring and affiliation data that “unemployment grows, in monthly and seasonally adjusted terms, although there is a rebound in Social Security affiliation, which responds mainly to public sector contracting, more specifically, of education field" That is to say, that if it were not for the creation of public employment, not only would unemployment have grown but also jobs would have been destroyed. A similar conclusion can be drawn from the Funcas assessment.
CEOE warns, in fact, that "it is appreciated", for the third consecutive month, "a fall in employment, more pronounced in the private sector, which is accusing the global and European economy slowdown and uncertainty and lack of confidence, affecting internal and external demand ”.
Eleven sectors destroy employment
For now, eleven sectors of activity destroyed jobs in October in monthly terms. In the farming 920 jobs were destroyed (-1.21%), in the Extractive industries, 218 (-1.11%); in the sector of supply of electricity, gas, steam and air conditioning, 17 (-0.05%); at water supply, sanitation and waste management, 3,800 (-2.61%); at Commerce, 6,757 (-0.27%); in the hostelry, 60,638 (-4.21%); in the financial and insurance activities, 413 (-0.13%); in the Real estate activities, 465 (-0.57%); in the administrative activities and auxiliary services, 19,323 (-1.42%); in health activities and social services, 35,951 (-2.2%), and in the domestic service, 1,566 (-3.5%).
As the data show, the largest job destruction in relative terms it is observed in hospitality and domestic service, two of the sectors most affected by the unilateral rise of the minimum salary Pedro Sánchez, which indicates that the only structural change – along with the time register – in the labor market promoted by the Socialist Government is aggravating the crisis that is beginning to be seen in the labor market.