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Hiring falls but enrollment in Social Security increases, why is this happening?

The enrollment rate to Social Security has accelerated again in February, specifically up to 4.5%, its largest increase in eight months. Equivalent to 844,200 new jobs in the last 12 months. The average number of members was 19.69 million people. It’s been three consecutive months with year-on-year increases in membership of over 4%, something that hasn’t happened since June 2006, according to the Adecco Group Institute.

As for the number of unemployed registered, is 3,111,684 people, the second lowest figure since September 2019 and 897,100 less than a year ago. However, at the end of February there were still 115,300 employees in ERTE, just 1,500 less than a month earlier.

Javier Blasco, director of the Adecco Group Institute, affirms that “The enrollment and registered unemployment data continue to advance with striking force given the state of the economy. There is a drop in contracting as a whole and temporary, with strong growth in indefinite contracts, motivated by the transformation of temporary contracts into discontinuous fixed ones, which brings out the debate on the potential net employment that can be created by the labor reform in a scenario of uncertainty and possible stagflation”.

“The most usual thing is that in March there is a monthly increase in membership. Hence, the year-on-year rise could reach +4.6%, with 19.79 million employed. Unemployment could fall 21.9% year-on-year, with a total of 3.09 million unemployed”foresees the director of the Adecco Group Institute.

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Javier Blasco points out that “All efforts should be focused on strengthen the productive economy and encourage job creation. An adaptive and flexible regulation is necessary, which provides legal certainty and allows promoting active employment policies and public-private collaboration in terms of intermediation. In accordance with the most successful models of the European Union, the labor market must be made more flexible, favoring hiring, while giving people security. For this, social dialogue and collective bargaining are essential to help towards this flexibility as a guarantee of employment, minimizing taxes and contributions on employers, companies and the self-employed, and promoting the training and requalification of workers, especially the most vulnerable groups, young people, the long-term unemployed, people over 55, women and people with different abilities.”

Highlights

As the Ministry of Labor has already announced, the number of registered unemployed in February is 3.11 million people. The number of unemployed had its best inter-monthly evolution in at least 12 years, with a decrease of 0.4% in relation to January. Thus, for the tenth consecutive month, the number of unemployed accelerated its rate of reduction (-22.4% year-on-year; the largest drop, at least, since 1996), especially among men (-25.4%; female unemployment dropped 20.1%).

As for affiliation to Social Security, it continued accelerating its year-on-year rate of increase: in February there was 844,200 more affiliates than a year before (+4.5%). Its biggest increase in eight months. This figure stands at 19.69 million Social Security affiliates in the month of February. It has been three consecutive months with year-on-year increases in enrollment of more than 4%, something that has not happened since June 2006.

Services contributed nine out of every 10 jobs created in the last 12 months (+5.4% year-on-year, its highest increase since May 2006). Salaried jobs grew more (+5.1% year-on-year) than non-salaried jobs (+1.6%).

During the month of February, 1.44 million contracts were signed (+19.1% year-on-year). The new regulations, which favor the use of fixed-discontinuous contracts, they fired the indefinite hiring in February, which jumped 139% year-on-year. On the other hand, storms only grew 4.4%, their lowest increase in a year. Those with the greatest growth were permanent part-time jobs (+379%).

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