Unemployment in January grows by 90,248 people, according to data released today by the Ministry of Labor and Social Economy. Although January is a traditionally unfavorable month for seasonal employment, We are facing the highest increase in unemployment in January since 2014, -mes in that it grew in 113.097 people-, in line with the loss of dynamism of the activity that has been evidenced month by month.

In addition, in seasonally adjusted terms, unemployment also increases by 13,480 people. Considering the interannual data, the balance of the last 12 months highlights a drop in unemployment in 31,908 registered unemployed, with an interannual rate that slows down to -0.97%. In this way, unemployment remains above three million, at 3,253,853 people.

Regarding Social Security affiliation data announced by the Ministry of Inclusion, Social Security and Migration, especially significant to take the pulse of the evolution of our labor market, reflect a decrease compared to the previous month by 244,044 people.

We are therefore facing the biggest fall in January since 2013, in which it was reduced by 263,243 employed, and before a timid growth in seasonally adjusted terms of 5,324 people. The number of employed members is 19,164,494.

In year-on-year terms, membership increases by 345,194 people, compared to 537,269 in January 2019. In this way, the year-on-year rate stands at 1.83%, with a gradual drop from 2.94% in the same month last year. one year.

With respect to the total number of registered contracts, in January it experienced a 5.02% decrease over the same month of the previous year, -93,240 less contracts. Thus, the number of registered contracts is 1,764,837.

General scheme

The end of the Christmas campaign corroborates the trend of the months of January of previous years, with a general decrease in affiliation in all sectors, compared to the previous month – except for the supply of electricity, gas, steam and air conditioning; and real estate activities, with minimal growth-, led by trade -43,057 less employed-, hospitality -42,987 less-, and administrative activities and auxiliary services -39,752 affiliates in high less-.

Data on unemployment, hiring and affiliation to Social Security show the loss of dynamism in the labor market, which has been occurring gradually throughout the year, in line with the slowdown of economic activity, uncertainty in the environment global and the crisis of confidence in the national sphere.

This is evident if we take into account that in January of last year employment grew at rates of 3%, compared to 1.8% in January 2020, which implies that growth in interannual terms is lower in almost 200,000 employed. This is especially worrying in our labor market, characterized by high unemployment rates, which still place us well above the European average and away from our historical low of 7.93% in the second quarter of 2007. In addition, we are facing the worst unemployment and membership data in a month of January of the entire recovery period.

In the current context of loss of dynamism of the economic activity, the announced measures cause concern, increasing the pressure of corporate taxation and in particular the one that directly affects employment. Likewise, the intentions of labor law reform are worrisome, aimed at reducing the ability of companies to adapt to changing and global environments.

>> Labor Market Observatory-February 2020

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