labour market reform

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.

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.

The Catalan Parliament has devoted a two-day plenary session to debate the youth unemployment problem and how it could be reduced. According to the latest Active Population Survey (EPA), the youth unemployment rate in Catalonia reached 52.7%. This means that 1 out of 2 youngsters between 16 and 24 years old who want to work cannot find a job. Around 151,000 youngsters are unemployed in Catalonia; 64% of them worked in the service sector and 17% have never worked. The Catalan President, Artur Mas, asked to manage the proportional share of the European Union’s funds allocated to fight youth unemployment in Spain, since the Catalan Executive holds the competences.

The Workers Commissions trade union (CCOO) has issued a study calculating that 595,000 jobs have been lost in Catalonia since 2008. Furthermore, the number of unemployed people has increased by 428,000 individuals. The study also revealed that the active population was reduced by 85,900 people (-2.3%) between 2011 and the last quarter of 2012. The Socio-Economy Secretary of CCOO said at the presentation of the study that “there are no objective indications of a short-term recovery of the economy or employment levels”.

Registered unemployment in Catalonia decreased by 3.87% in June compared to the previous month’s figures. June is a month when unemployment tends to be reduced due to summer jobs, but last month registered the highest drop since 1996. The total number of people registered as unemployed at the Catalan Public Employment Service (SOC) by the end of June reached 617,288 individuals. However, compared to a year ago, registered unemployment increased by 1,712 people, 0.28% more than in June 2012. In the whole of Spain, registered unemployment also increased in annual terms (+3.2%) and decreased compared to a month ago (-2.6%). Catalonia is the Autonomous Community where unemployment decreased the most in monthly terms. Furthermore, in the Lleida Province (Western Catalonia), unemployment also decreased in annual terms.

By the end of last month, 14,829 fewer people were registered at the Catalan Public Employment Service, which leaves the total number of registered jobseekers at 642,166 individuals. This represents a 2.26% drop compared to the figures from April, meaning that registered unemployment decreased in Catalonia for the last three consecutive months. May is a month when unemployment tends to drop thanks to temporary summer jobs, mostly related to the tourism industry. In the whole of Spain, unemployment decreased by 1.97% in May, with 98,265 fewer people registered as unemployed. This leaves the total number of people registered as being without a job and looking for one at 4,890,928 individuals in Spain. The Catalan Government welcomes “the positive horizon” shown by the May figures but it considered them to be “insufficient” as yet.

By the end of March, unemployment in the whole of Spain set a new historical record high with a rate of 27.16% and more than 6.2 million people being without a job and looking for a new one. This represented a quarterly increase of 237,400 individuals and a yearly growth of 563,200 people. In Catalonia, 902,300 people were unemployed by the end of March, 17,100 more individuals than three months previously and 65,300 more than a year ago. This sets a new historical record high for Catalonia too, breaking the previous one just set three months ago with a rate of 23.9% unemployment by the end of 2012. Unemployment increased throughout Catalonia except in the western Lleida province where it has been decreasing over the last year.

The number of people registered as unemployed at the Catalan Public Employment Service (SOC) was reduced by 0.17% in March, compared to data from February. The total number of unemployed people in Catalonia registered at the SOC was 664,050 by the end of March, 1,126 fewer than in the previous month. However, this is 25,083 more people than a year ago. In the whole of Spain, the number of unemployed people decreased by 4,979 individuals last month. However, there are still more than 5 million people officially registered as unemployed in Spain. At the end of March there were 284,376 more people registered as unemployed than were registered a year ago, which is an increase of 5.99%.

The number of people unemployed and registered as such by the end of February at the Catalan Public Employment Service (SOC) increased by 3,359 people compared to the January figures. This is the lowest unemployment increase registered in the month of February in the last six years. In total, there were 661,176 people in Catalonia who were without a job and were looking for a new one. This sets a new historical record, with 23,228 more people unemployed than a year ago, representing a 3.62% increase. In the whole of Spain, unemployment increased by 59,444 people in February and for the first time the number of people officially registered as jobseekers topped 5 million individuals. Within the last 12 months, unemployment in Spain increased by 328,124 individuals, 6.96% more than those registered in February 2012.

The number of unemployed people had reached 885,000 individuals by the end of 2012, a record high, with 110,000 more jobseekers than a year ago. This means that Catalonia’s unemployment rate increased from 20.5% to 23.9% in the last twelve months, breaking the previous record of 22.8% from the third quarter of 1985. In the whole of Spain, unemployment reached a rate of 26%, while a year ago it was 22.85%. It increased by 13.1% over the last twelve months, adding 691,700 more jobseekers to the list. Spain reached a historical high of 5.97 million people being unemployed.

646,306 people were unemployed in Catalonia at the end of October. This is the highest figure since the start of this data series in the year 2000. Over the last month, unemployment in Catalonia grew by 2.19%, while a year ago, in October 2011, it grew by 2.43%. However, October 2012 was the third consecutive month with an increase in the number of people registered on the SOC lists. For the whole of Spain, unemployment increased by 128,242 people in October and reached 4,833,521 individuals without a job who were searching for a new one. Regarding geographical distribution, unemployment increased in all of the four Catalan provinces.

The German Chancellor is “impressed” with Spain’s reforms. According to Angela Merkel, the reforms are headed “in the right direction”, they need to be pursued “at all government levels” and they will need “time to show their results”, “as it happened in Germany ten years ago” with their structural reforms. Angela Merkel met with the Spanish Prime Minister Mariano Rajoy in Madrid, the day the European Central Bank announced it was buying sovereign bonds. Merkel stated that reforms have to continue “at all government levels”. The Chancellor also defended the European Union as a project guaranteeing peace and prosperity, and the Euro as “our common currency”.

The trade union UGT has calculated that 478,969 jobs have been destroyed in Catalonia between the June 2007 and June 2012. Furthermore, the union fears a “layoff avalanche” next autumn in the public sector.

According to a report by the trade union CCOO, with the Spanish Government’s last budget adjustment, after the sixth month of being unemployed people will no longer receive an average of €222 per month. The report points out that people aged between 45 and 55 will be the most affected since many are in a long-term unemployment situation and will no longer qualify to receive any subsidies. Cristina Faciaben from the CCOO is convinced that the last series of measures to reduce the public deficit will not achieve its objective, and on the contrary will lead to a worsening of the economic crisis.