Social Security contributors are up by 482,096 since the start of the year, surpassing the job creation of 2022

The number of national insurance contributors grew by 482,096 people in the first eight months of the year, standing at 20,722,990 workers in August, discounting seasonality and the calendar effect. In the period January-August, more jobs were created than in the whole of 2022, with the highest increase in the series recorded, discounting 2005 (due to the extraordinary regularisation) and 2021 (the year of post-pandemic recovery). Compared to July, the increase is 17,745.

The average number of new contributors stood at 20,706,500 in August, the highest ever figure for the month of August. The year-on-year variation in affiliation accelerated to 2.76%, with 555,499 more people than a year ago. In the period January-August 2023, the average number of contributors grew by 410,229, one of the most dynamic performances in the series.

Compared with July, the average variation was -185,385 persons employed, a smaller decline than that recorded in this month in the years prior to the pandemic.

Employment in innovative activities remains buoyant

Compared to the pre-pandemic level (February 2020), the number of contributors has grown by more than 1.3 million people in adjusted terms, of which two out of three are in the private sector.

Employment growth compared to the pre-pandemic level is especially notable in high value-added sectors, such as Information Technology and Telecommunications, where the number of employees has grown by 23.9% compared to before the pandemic, and Professional, Scientific and Technical Activities, which grew by 14.4%. Since the end of the pandemic, one in four new contributors (almost 291,000 in absolute terms) has joined these highly productive sectors.

Improved performance of female and youth employment

Compared to the pre-pandemic level, female employment also shows particular dynamism. Specifically, women's employment increased by 8.6%, which is 3 points more than the figure for men.

The same is true for young people, the behaviour of whom is likewise particularly positive. Compared to the pre-pandemic level, youth employment is up 10.4%, which is 3.4 percentage points above the average. Looking back to December 2021, before the labour reform, the increase in employment among the under-30s is 12.7%, almost three times the average for all ages (4.4%).

Improving job quality after labour market reform

Twenty months after the entry into force of the labour reform, its positive effects on stabilising employment and improving its quality can be clearly seen. In August, the percentage of temporary contract workers stood at 15%, almost half what is was before the labour reform (29%).

In the case of those under 30 years of age, the reduction in the temporary employment rate is more intense, dropping by 28 points (from 53% to 25%) compared to its pre-reform level.

By sector, temporary employment has been reduced in all sectors, but especially in those with a historically high rate, such as Construction and Hotels and Catering, where the weight of temporary workers has been reduced by 29.7% and 22.6%, respectively, since the implementation of the labour reform.

Overall, there are now 2.8 million more contributors on permanent contracts now in December 2021, the last month before the reform came into force. Another indicator of greater stability is the increase in the average length of contracts that have been terminated. Between January and August this year, the average increased by 34% (up to 257 days) compared to the same period in 2019, the last comparable year prior to the impact of the pandemic, improving on the 2022 figures.

Furthermore, the number of workers on ERTEs (temporary regulation of employment) remains at minimum levels, at around 11,000 people, 0.1% of all contributors.

Substantial improvement in social security revenue

The strong dynamism of the labour market and the increased quality of employment is helping to strengthen the sustainability of the pension system, with revenues from social security contributions growing by 10.2% up to July. Discounting the revenue effect of the Intergenerational Equity Mechanism (IEM), which started to be applied in January 2023, contributions are growing at a rate of 8.4%. Last, the improvement in employment brings the ratio of contributors to pensioners to 2.39, at a decade high.

Non official translation