Spanish Unemployment Hits Lowest Level Since January 2008

The figures released on Thursday by the Ministry of Labour confirm a trend that had been emerging for months. Registered unemployment fell in June by 28,739 people compared with May, bringing the total down to 2,291,982 unemployed. A figure this low had not been seen since January 2008, that is, before the financial crisis broke out.

The decline is not evenly spread across sectors. Services account for almost all of the adjustment, with 28,498 fewer jobless, driven by the start of the tourist season.

They are followed by industry, with 2,829 fewer unemployed, construction, with 1,326, and agriculture, where the drop is limited to 384. There is, however, one figure that breaks the run of good news: the number of people with no previous employment has risen by 4,298, an indication that those looking for their first job, or trying to return to the labour market after some time out, are finding it harder to secure a place.

By age group, youth unemployment continues to fall: 5,155 fewer young people than in May and 6,907 fewer than a year ago, with the total standing at 159,800, the lowest level in the entire historical series for this group. The year-on-year drop is more noticeable among young women, with 4,090 fewer unemployed, than among men, with 2,817.

Women, the driving force behind the fall in unemployment

Female unemployment has fallen below 1.4 million for the first time since August 2008. There are currently 1.39 million women out of work, compared with 903,673 men. Over the last month, the decline has been of almost 16,000 women and 13,000 men; over the last year, of 72,000 and 41,000 respectively.

The second vice-president and Minister of Labour, Yolanda Díaz, linked part of this improvement to the ongoing process to regularise workers, which she said has made it possible to bring to light jobs that previously existed without legal recognition and which now count both towards social security registrations and the recognition of labour rights. In the case of women, the increase in the number of contributors over the last year is around 300,000, bringing the total to 10.6 million, the highest figure ever recorded in Spain.

Among unemployed foreign nationals, the number is also down: 342,086 people, 4,208 fewer than in May and 10,068 fewer than a year ago.

Social security registrations hit another record and retail powers the summer

Social Security added an average of 128,533 contributors compared with May, reaching 22.47 million, an all-time high. Once the calendar effect is stripped out, the seasonally adjusted figure also sets a record, above 22.2 million. Over the past 12 months the system has gained 600,595 contributors and shed 113,981 unemployed.

Wholesale and retail trade tops monthly growth with 39,325 new registrations, ahead of hospitality, with 37,696, and administrative and support service activities, with 29,316. Looking at the full year, other sectors provide the momentum: health and social services add 78,373 contributors and construction 66,280.

The self-employed continue to increase in number, reaching 3.47 million after adding 12,000 over the month and 50,800 over the year.