The labor market continued its record-breaking path for job creation in July. Spain exceeded 22.5 million Social Security affiliates for the first time, according to data published this Tuesday by the Ministry of Inclusion, Social Security and Migrations, led by Elma Saiz. Affiliation increased by 41,727 people, 0.19% more than the previous month, reaching a total of 22,508,065.
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With the exception of the years marked by the pandemic (2020 and 2021), this is the best affiliation performance in a July since 2017. However, the advance was more moderate than in June, when the start of the tourist season traditionally boosts hiring. In the last year, Spain has created 642,562 jobs, a growth rate that has accelerated to 2.9% year-on-year.
Optimism in affiliation contrasts, however, with the unemployment data from the last month. The number of people registered with the State Public Employment Service (SEPE) rose by 19,517, 0.85% more than in June. Thus, there are now 2,311,491 people registered as job seekers. This is 93,107 fewer than a year ago, as the year-on-year reduction in unemployment is 3.87%.
There are now 2,311,491 people registered as job seekers in Spain, 93,107 fewer than a year ago
The Ministry of Labor, led by Yolanda Díaz, has emphasized that this is the lowest number of unemployed recorded in a July since 2007. In fact, the department argues that this monthly increase is “atypical” and attributes it partly to the effects of the latest labor reform. This limited the use of temporary contracts, which has reduced the seasonality of the labor market and also altered the usual behavior of unemployment during the summer months.
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Returning to affiliation, the July rise cannot be separated from the impact of the extraordinary regularization of migrants promoted this year by the Spanish Government. Job creation among foreigners was “especially dynamic,” according to the Ministry, with 66,046 more contributors than in June and 420,785 more than a year ago.
“Together, they already represent 15.6% of the total affiliates and continue to play an essential role in the dynamism of the labor market and in sustaining the Social Security system,” explained Minister Saiz. As of July 30, the number of foreign affiliates regularized through the extraordinary process amounted to 262,475.
Looking at the sectors that created the most jobs over the past month, in absolute numbers, the largest increase in affiliates was in health and social services (with 57,446 new employees), followed by commerce (with 50,100) and hospitality (with 23,999). The other side of the coin is found in education, an activity that usually destroys employment in summer due to the end of the school year. This sector lost 124,506 affiliates in a single month, a more than notable drop of 9.45%. This figure is far from the 4,773 jobs reduced in professional, scientific, and technical activities, the second category in terms of job loss.
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