• The number of unemployed stands at 5,904 million and the unemployment rate falls three tenths, to 25.98%
  • The private sector creates 52,000 net jobs, while the public loses 12,600

Unemployment has dropped by 72,800 people and 39,500 jobs have been created in the third quarter of the year compared to the second, according to the Labor Force Survey (EPA) published today by the National Statistics Institute (INE). These data contrast with those of a year earlier, in which unemployment increased by 85,000 and employment fell by 97,000 people. In the last year, 497,100 jobs have been lost, -2.9% compared to -3.6% in the previous quarter. The total number of unemployed people stands at 5,904,700 and the unemployment rate falls three tenths, to 25.98%.

By sector, job creation is concentrated entirely in services, with an increase of 123,900 jobs. In contrast, agriculture loses 55,000 jobs; industry, 19,700; and construction, 9,700. Compared to a year earlier, all major sectors of activity lost jobs, with the services sector (197,400) in first place. However, this sector slows down its year-on-year rate of decline, by 1.2 percentage points, to -1.5%; Construction also moderates the annual rate of decline, while industry and agriculture intensify their year-on-year rates of decline.

The increase in employment comes entirely from the private sector with 52,000 new net jobs, while the public sector continues to destroy jobs, at 12,600 workers during the third quarter. This is the first time since 2007 that private employment has increased in this period. Regarding public employment, there have been strong increases in previous years (2009 and 2010), although discontinuously and in the context of initiatives with a strong negative impact on the public deficit.

Considering the professional situation, the quarterly increase in employment is divided into 23,200 for employees and 15,200 for non-employees. According to job stability, workers with permanent contracts decreased by 146,300 and temporary workers increased by 169,500. In relation to a year earlier, workers with permanent contracts decreased by -3.8% (the rate of decline moderated by 0.2 points) and those with temporary contracts fell by -2.3% (below -6 , 9% of the second quarter). The temporary rate rose to 24.3%, 1.2 points more than the previous quarter and three tenths above that of a year earlier.

Regarding the working day, full-time employed persons increased by 207,700 in the quarter, while part-time employed persons decreased by 168,200. Compared to the same period a year earlier, full-time ones decreased -4% and part-time ones increased 3.9%. These rates represent a slowdown of 1.3 points in the fall for the first group and a moderation of the growth rate of 2 percentage points in the second. The weight of part-time workers over the total decreases one point in the quarter (up to 15.4%) and increases by the same magnitude compared to a year earlier.

The active population continues the downward trend and decreases by 33,300 people in the quarter (-0.15%). Compared to a year earlier, the drop is 370,400 people, -1.6%, compared to -1.5% in the previous quarter. The decline in the labor force responds to a decrease in the population over 16 years of 85,200 people compared to the second quarter. The activity rate shows a slight increase (five hundredths), standing at 59.6%, due to the evolution of the activity rate for men, which rises three tenths and stands at 66.42%. On the other hand, that of women decreased two tenths, to 53.1%.

The Unemployment decreased by 72,800 people, compared to an increase of 85,000 in the same quarter of the previous year. This is the largest drop in unemployment for a third quarter since 2005 and is also the third largest decline in importance for a third quarter of the historical series. In this way, the total unemployed stands at 5,904,700 people and the unemployment rate decreases by 0.3 points, to 25.98% of the active population. The fall in unemployment especially affects women, with a decrease of 68,700 people, bringing the unemployment rate of this group down by a little more than half a point, to 26.6%.

The Autonomous Communities where employment increased the most compared to the previous quarter were Catalonia (52,300 more employed persons), the Balearic Islands (23,900) and Aragon (11,600). In the first two it is also where unemployment has decreased the most. The communities with the worst performance in occupation were Andalusia (with a loss of -52,300), Madrid (-43,800) and the Basque Country (-17,700).

The EPA's third quarter results are moderately positive, given the increase in employment and the fall in unemployment. They are also consistent with the new phase of economic recovery and compatible with the Government's forecasts for the year. It is expected that employment will tend to stabilize first and subsequently record growing positive rates throughout 2014, as economic growth consolidates. For this, it is necessary to persevere in the current design of economic policy, specifically, fiscal consolidation and structural reforms, along with efforts to moderate rents and prices. This is the guarantee of maintaining competitiveness gains, improving the foreign sector and increasing confidence in the economy.

Source of the new