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Labor dynamism recovers to pre-pandemic levels

The labor dynamism in Spain it has reached a value close to 4.7% in September 2021, which is the confirmation of the pre-pandemic values, since in February 2020 it was 4.3%.

This is what emerges from the thirteenth edition of the report on the Labor Dynamism Index prepared annually by Cegid, in Spain Meta4 A Company and the IESE, to analyze the movements produced in the labor force in Spain that do not imply the creation or destruction of jobs. work, reveals that in September 2021 the indicator of labor dynamism reached a value close to 4.7%, very similar to the 4.3% experienced in February 2020, a moment prior to the health crisis caused by the pandemic.

Analyzing the evolution of the IDL it can be seen how the indicator has remained constant from mid-2018 to September 2019 with around 6% of workers changing jobs monthly. However, according to the index, labor dynamism begins to decline in the last quarter of 2019 until it drops to 2% per month during the period from April to June 2020. Likewise, from March 2021 to September, the average value is 4 , 5% and presents a slight increasing trend.

Regarding the data on variations in the size of the companies, these suggest that the health crisis has not had a medium-term effect on the organizational size, if we do not consider the records of regulation of temporary employment. The effect of the crisis is clearly visible in the volumes of hiring and terminations, but not on the size of the workforce: the lower dynamism measured by the index.

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The median salary remains at 26,000 euros

Regarding the analysis of the evolution of the salary mass of the companies in the analyzed sample, while the results show that the salary mass of the companies experienced an increase throughout the years 2018 and 2019, the year 2020 began with a moderation wage that suffered a sharp decline until July, followed by a recovery in August and September.

The report reveals that, during the last twelve months, the wage bill has remained stable. Specifically, the median salary that between 2018 and 2019 experienced a growth of 23,000 euros to almost 27,000 euros gross per year, has suffered a decrease to 25,000 euros in the summer of 2020, to settle at 26,000 euros from September 2020 to the present.

An initial analysis of the relationship between wages and labor dynamism at the company level indicates that the relationship is negative. In other words, the companies with the greatest movement of workers are also those with the lowest median salary. On the contrary, companies with higher median salary values ​​show quite limited levels of internal dynamism. This relationship has not been altered as a result of the health crisis.

For Marta Elvira, professor at IESE Business School and director of research at IDL since its inception, together with Stefano Visintín professor at Camilo José Cela University: “As of October 2021, it is interesting to see how our labor market compares with the one before the health crisis. We see that last summer, after going through the depths of the crisis, the labor market had only recovered part of its dynamism. Companies and workers were waiting to make decisions for many months. We have had to wait for the spring of 2021 to see signs of a true recovery which, by the way, has not yet been completed. Today, we see how workers and companies have finally begun to move in the labor market, opening up to new opportunities and the trend is towards a greater movement. This recovered dynamism is not yet reflected in the wage data that have remained stable for more than a year ».

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