jobs

Catalonia ended 2013 with an unemployment rate of 22.26% and a total of 820,400 people unemployed, according to the Active Population Survey (EPA) for the fourth quarter. In late 2013 Catalonia registered 64,700 fewer unemployed people compared to the last quarter of 2012. At Spanish level, the unemployment rate was set at 26.03 %, with a total of 5,896,300 unemployed people. At the end of 2013, there were 69,100 fewer unemployed than in the last quarter of 2012. Furthermore, between September and December there were 8,400 fewer jobseekers in Spain. In the same 3-month period there were 20,100 fewer jobseekers in Catalonia. The Catalan Deputy Minister for Employment stated that these figures were “the best since the start of the crisis” since “for the first time, the number of employed has increased and the number of unemployed has decreased”.

The “very moderate” growth expectations for 2014, between 0.5% and 1%, will make it “difficult” for the unemployment rates to fall below the current 27%. This was the conclusion of the 2014 Economic Report of Barcelona-based ESADE, one of the top business schools in the world. The main author of the report stressed that this “slow and costly” growth should contribute only in a “very reduced” way to creating new jobs in 2014. However, he also explained that the Labour Market Reform would have positive effects on employment levels in the medium and long term. The study indicates that consumption in 2014 will “remain restricted” due to the high unemployment rates and reduced wages.

The President of the Catalan Government, Artur Mas, insisted this Tuesday he will organise a self-determination vote within the legal framework on the date agreed upon by four political groups 3 weeks ago. In a press conference following the first Cabinet Meeting of 2014, Mas ruled out the possibility of making changes in the government he chairs on the short-term, after speculations that the Catalan Left-Wing Independence Party (ERC) could sit in the Cabinet, formed by members from the Centre-Right Catalan Nationalist Coalition (CiU) and independents. In addition, he identified “a cross slope” in the economic, social and political context, referring to a slight recovery, after 6 “terrible and fearsome years”.

Catalonia has ended 2013 with 22,084 fewer unemployed people than in December 2012, with the total number amounting to 624,872 people, according to the Ministry of Employment and Social Security. The December figures also reveal that the total number of unemployed people has decreased between December 2012 and March 2013, a first since 2006. At monthly level, the number of unemployed people fell by 13,472 between November and December 2013. In the whole of Spain, the unemployment figures registered a drop, with 147,385 fewer people unemployed and the total number falling to 4,727, 814.

Speaking to the Economic Affairs Committee of the European Parliament, the European Commissioner for Employment, Lázló Andor, said that Spain should profit from its decentralised organisation to help fight youth unemployment. He suggested that the rest of Spain’s Autonomous Communities should follow the examples of Catalonia and Navarra to improve employment levels among youngsters. The European Commissioner said that Spanish authorities should take note of the plans launched by Catalonia and Navarra, where the youth unemployment situation “is better than the national average”. However, despite these levels being lower than in most of Spain, youth unemployment in Catalonia is worryingly high, at more than 53% in July.

The Catalan Government has forecasted a 0.9% economic growth for 2014 in its budget proposal for next year, leaving behind the recession of 2012 (-1.2%) and 2013 (-1.1%). The positive figures are mostly due to the strength of the export sector – which will continue to improve its results. The main factor slowing down growth will be the internal demand, which will continue to decrease although it will do so at a lower pace. In addition, the Catalan Executive believes the unemployment rate will decrease and reach 23.1% by the end of the year. It is expected 2013 will end with a 23.7% unemployment rate, higher than the 22.6% rate registered at the end of 2012.

However, in annual terms, Catalonia registered a fourth consecutive drop in unemployment figures with a 1.93 % decrease compared to October 2012 and 12,474 fewer jobseekers. By the end of October 2013, 633,832 people were registered as unemployed at the offices of the Catalan Public Employment Service (SOC), meaning a 2.08% increase since the month of September, with 12,921 extra people unemployed. These latest figures, which were released by the Spanish Ministry of Employment and Social Security, also indicate a third consecutive month of growth in unemployment. In the whole of Spain, registered unemployment also increased for the third consecutive month.

The President of the European Parliament, Martin Schulz, visited Barcelona on Thursday and met with the President of the Catalan Government, Artur Mas, and the Secretary General of the Catalan Socialist Party (PSC), Pere Navarro. Schulz, who is the Social-Democrat candidate in the next European Elections for the President of the European Commission, acknowledged that he talked about Catalonia’s self-determination process with Mas and Navarro. However, the German politician refused to take sides, saying he has “no solution” to offer and that “the problem” has to be solved between Catalonia and Spain, not at European level. Furthermore, he insisted that Catalonia’s independence should not be the issue in the next European elections. “I want to talk about youth unemployment”, he stressed.

In Catalonia, the unemployment rate decreased by 32,500 people to reach 22.84%. The Spanish Labour Force Survey has recorded two consecutive semesters of decrease in the unemployment figures after new highs had been reached in early 2013. Catalonia is currently leading the country in terms of unemployment reduction: on the Spanish Scale, the latest figures indicate a drop in 72,800 people while the rate is set at 25.98%.

The Barcelona-based nationalised Catalunya Banc has reached a first deal with unions on the announced mass lay-off. The deal includes voluntary redundancies instead of early retirements, and the possibility for 401 workers over 50 years old to leave the company. The agreement was reached in the early hours of Wednesday morning, after a long day of talks on Tuesday. Catalunya Banc runs the banking business of the nationalised savings bank CatalunyaCaixa, which will be sold in the coming months after a comprehensive restructuring process. Talks are still ongoing in order to close a definitive deal and the definitive agreement has now to be ratified by the bank’s Board.

At Spanish level, unemployment increased both in monthly and annual terms. Catalonia is the Autonomous Community with the largest annual unemployment drop in absolute terms and the second highest in relative terms. The number of people registered as unemployed in Catalonia at the end of September dropped by 11,546 individuals compared to figures from a year ago, representing a 1.83% annual decrease. However, in monthly terms, registered unemployment increased by 1.51%, with 9,243 more jobseekers. September is a month with a traditional unemployment increase due to the end of summer season contracts. Last September’s unemployment increase was the lowest since 2008.

Nils Schmid, Vice President of Baden-Württemberg and regional Minister for Finance and the Economy, said in an exclusive interview with the CNA that Catalans are the ones who have to decide whether they want to remain within Spain or to become independent. This process should “of course […] be based on a referendum”. The Leader of the Social-Democrats (SPD) in this state also added that his party is proposing to include the possibility of holding referendums at national level in Germany, which is currently not envisaged by the German Constitution. However, he “cannot imagine” an independence referendum for Baden-Württemberg. On other issues, Schmid pointed out that “fiscal consolidation is not enough” and has to come with “structural reforms” and policies to stimulate growth. He also welcomed Catalans who are going to Germany to find job opportunities.

Following a decade of significant increases in the amount of foreign nationals in Catalonia, it appears that many are beginning to leave as job opportunities dry up. In 2000, the percentage of foreign nationals living in Catalonia was 2.9%, while just over a decade later in 2011 this figure had increased to 15.73%. However, in the past couple of years the amount is beginning to reduce: between 2009 and 2013, 44,000 foreign nationals left Catalonia. According to the Spokesperson of non-governmental organisation SOS Racisme, Jose Peñín, immigrants are leaving as “they have less stable contracts and work in more abusive conditions”.

The General Workers Union (UGT) issued a report stating that the Catalan economy experienced 567,099 job losses between 2007 and 2013. The figure represents a reduction of 16.86% on the total number of jobs that existed in Catalonia 6 years ago. While presenting the report, the UGT’s Secretary for Union Policy, Camil Ros, warned that figures do not show “a recovery of job creation”. Ros criticised the Spanish Government for “lying” and presenting macroeconomic figures in a way that “do not correspond to reality” since there are no signs of economic recovery. “At most, the job reduction has slowed down [its pace]”, he added.

By the end of July there were 6,859 fewer people registered at the Catalan Public Employment Service (SOC) than a month ago, which leaves the total number of registered unemployed individuals at 610,429. The current amount of jobseekers is now the same level as September 2011. Unemployment levels have been decreasing in Catalonia for the last five consecutive months. In addition, last July’s drop is the most significant reduction in this month of the year since 2010. In the whole of Spain, the unemployment rate decreased by 1.36%, with 64,866 fewer people registered at the Public Employment Service offices. This means that by the end of July there were 4,698,814 individuals registered as unemployed in Spain. The Catalan Government states that, if the trend is kept during the second semester, the economic crisis would have reached “its lowest level” earlier this year.