Unemployment falls by all-time high of 576,900 people over last year and job creation recovers at rate of 3.1%

The figures published by the Labour Force Survey (Spanish acronym: EPA) for the third quarter of the year show that the pace of recovery of the job market in Spain is picking up. According to the figures published by the National Statistics Institute (Spanish acronym: INE), the number of unemployed has fallen by an all-time high of 576,900 people over the last 12 months, and the unemployment rate has fallen to 21.18% of the active population. Job creation is recovering at an annual rate of 3.1%, the highest rate since the third quarter of 2007, in other words, since before the recession, and the total number of people in work is now above 18 million. Over the last year, 544,700 people have found a job, including 182,200 in the last quarter alone, a higher figure than in any other third quarter since before the recession. Almost all of the jobs created are in the private sector and are full-time jobs.

Economic activity maintains a rate of growth in excess of 3% in the year to date, which translates, in terms of the job market, to a recovery in the vitality lost during the serious recession that began back in 2008. The EPA figures for the third quarter also confirm that this term of office will close with better figures, both in terms of jobs and unemployment, than those corresponding to the end of the previous term of office at the end of 2011. This year has set a new all-time record in terms of the reduction in the number of unemployed, with a forecast of 650,000 fewer unemployed by the close of 2015. Progress is also being made towards the goal of 20 million people in work in the medium term.

The number of unemployed has dropped below 5 million in the third quarter of the year, for the first time since the corresponding quarter of 2011, to stand at 4.85 million. Whilst this figure remains very high, it has significantly fallen over the last two years. Unemployment has fallen by 576,900 people in the third quarter of 2015 compared with the same quarter of 2014, an all-time high since statistical records started to be kept. Compared with the second quarter, 298,200 people have left the unemployment queues, with the unemployment rate now standing at 21.18% of the active population, the lowest level since the second quarter of 2011 and 2.5 points lower than a year ago. The number of households with all its members out of work has fallen by 84,600 in the quarter, to 1.57 million.

Employment is growing at an annual rate of 3.1%, a higher rate than that recorded for any of the last eight years. Over the last 12 months, 544,700 jobs have been created in Spain, the highest number since the third quarter of 2007, in other words, since before the start of the recession. In the third quarter of this year, 182.200 jobs have been created, the highest figure for this period since 2006. Out of this figure, 205,500 jobs are temporary while the number of permanent employment contracts has fallen by 18,900. In the year to date, permanent employment contracts have increased by 178,100 and temporary employment contracts by 357,700. 73.85% of salaried workers in Spain have a permanent employment contract, while 26.15% have a temporary employment contract, a rate that has increased by more than one point in the third quarter.

The vast majority of jobs created in the third quarter are to be found in the services sector (210,200), followed by industry (13,100). In contrast, the number of jobs in agriculture and construction has fallen. Over the last year, in contrast, employment has risen in all sectors, particularly in the services sector, followed by industry, construction and agriculture. The majority of these jobs in the quarter are full-time jobs (an increase of 250,000 people), while part-time employment has fallen (by 67,800 workers). The percentage of people that work part-time has fallen by one point to stand at 15.24%. Over the last year, almost 80% of jobs created are full-time (up 418,800), while the remaining 20% are part-time (up 125,900).