Ten Charts Explaining The Impact Of Health Crisis On Employment

2021-01-28   |   by CusiGO

After six years of job creation, the coronavirus has cut off its path. Although the recovery in 2019 has cooled, people did not expect the impact of the epidemic and therefore the ensuing employment collapse. At some point in the year, job losses are reminiscent of the worst of the great depression, with 622600 jobs lost this year.

The increase in unemployment. The development of unemployment rate is opposite to that of employment rate. Their development depends not only on creating or destroying employment opportunities. The development of the labor force also plays a role. However, the good momentum has been broken. In 2013, the number of unemployed began to decrease, and it will increase again in 2020. Although its impact has been buffered by RTE, the final growth is 527900.

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Incarceration has led to a dramatic decline in the labor force, the elderly group and the willingness to work, which is unprecedented so far. Because of the confinement, many unemployed people can’t be regarded as unemployed, so they theoretically withdraw from the labor market in the spring. They have returned, and by the end of 2020, Spain’s labor market has returned to the size it lost, with more than 23 million people again.

Affected by ERT. So far, temporary employment regulation (RTE) documents have become the lifeline of hundreds of thousands of jobs. They just extended it to 31. At its worst, 3.4 million wage earners were affected. In addition, those self-employed who have received assistance should be included. In the last quarter of this year, the EPA counted nearly 500000 people.

The unemployment rate is rising again, and the youth unemployment rate is soaring. Unemployment is an outstanding issue in Spain’s democratic economy. When the coronavirus appeared, after six years of recovery, the unemployment rate was still above 13%, which was considered unacceptable in any other developed country. In Spain, it was lower than the average of the past 40 years. At the end of the financial year, the ratio was 16.13%. Among young people under 25, the figure is higher (40.1%).

It hit the most vulnerable families. In the summer of 2019, the number of families with all members unemployed fell from 1 million for the first time in more than 10 years. Coronavirus has once again raised this number to a very high level, reaching 1197000 this year. These figures face a more serious challenge, that is, there will still be 609900 households without income by 2020.

Community unemployment rate. Spain’s labor market is still split in two. The unemployment rate in the southern communities is usually much higher than that in the northern communities, and the crisis tends to have a greater impact on them. This time and again, some communities (Andalusia, Estremadura, Canary Islands, Ceuta and melilia) have unemployment rates of more than 20% again. By contrast, Basque, Cantabria or Navarra are more resilient.

tentative. If unemployment is the main outstanding issue in the Spanish labor market, then temporality is equally important. The huge burden of temporary contracts between employees – usually the largest in Europe – has contributed to insatiable employment practices: creating a lot of jobs in boom times and unprecedented job destruction in recession times. This was mainly observed in the early stages of the pandemic. Since then, the temporary labor rate has returned to 24.6% in 2020.

All departments lost. By 2020, the number of workers in all four sectors of the economy will be smaller than at first. However, if there is one that has taken the worst part, it is definitely the service. Hotel, trade or transportation are all activities in this field, which have been hit the hardest in this crisis. This can be seen in the employment trend and also in RTES.

The public sector avoided further recession. If we only consider the private sector, the decline in employment rate will be even greater. The private sector has seriously damaged employment opportunities (nearly 750000 fewer than a year ago). Instead, the government has increased staffing. The epidemic has forced recruitment for health, education and administrative activities to increase public employment (125800).