The X-ray of the labor market that emerges from the ManpowerGroup index number 59 “Transforming the economy to boost employment” confirms that the Spanish labor market will not create net employment until 2024.
The index, which has been presented by ManpowerGroup together with the Spanish Chamber of Commerce, highlights that tourism, hospitality and commerce account for the bulk of the jobs lost since February.
Likewise, he highlighted that the accumulated impact on job loss this year is around 5% and has warned that the data is “more worrying” in youth employment and in the sectors that in the last quarter of 2019 supported 75% of the country’s employment and now suffer the bulk of the losses (some 900,000 jobs).
Specifically, young people under 35 years of age, with a low level of education and who work mainly in SMEs in the tourism, commerce and hospitality sectors are those who are suffering the most.
According to ManpowerGroup, this year’s crisis due to the pandemic has widened the gap between “the most and least resistant.” Thus, it has highlighted that compared to the 4.9% contraction of the affiliation of young people under 35 years of age, the reduction in the group of 35 years or more is practically nil.
“The bulk of the new unemployment in the last year has been absorbed mostly by young people – whatever their level of training – although more pronounced in groups with lower educational levels,” according to the report.
The study also highlights that tourism, commerce and hospitality, which account for 21% of Spanish GDP and which in the last six years have been responsible for the continuous creation of employment, are now “the major affected by the crisis.”
In fact, they have gone from creating 3% of annual employment to concentrating most of the job destruction this year. Specifically, the largest drop in employment so far this year has been registered in the hotel trade, training and domestic service, although in absolute numbers the impact registered in commerce also stands out.
Taking into account the size of the company, while those with more than 500 employees grew 1% in terms of net employment, those with 250 workers registered an average contraction of 4.3% and those with 50 employees a reduction in employment of 4.5%.
“What remains unchanged is a drop in membership of more than 12% in hospitality and arts and recreation, regardless of the size of the company,” says the report.
During the presentation of the index, the president of the Chamber of Commerce, José Luis Bonet, pointed out that the pandemic has led Spain into an unprecedented crisis, but that it also “opens a historic opportunity to transform the country thanks to funds from European recovery ‘.
Likewise, he has emphasized that training must occupy a “primary” place in the transformation process, because “people’s talent is the main engine of development of a country.” “Adjusting the educational offer to the skills and competencies demanded by companies is crucial at this time”, he added, after noting that “the great challenges that Spain must face, such as digitization, the ecological transition or globalization, require having a suitable and trained human capital for this ».
For his part, ManpowerGroup CEO Raúl Grijalba has warned that young people “run the risk of not having access to the new jobs created under the recovery funds if they are not properly trained.”
In addition, he believes that the year closes with two other “major concerns”, such as the “slowdown” of the tourism and hospitality sector, which have traditionally been “the locomotive of job creation in Spain” and which are now destroying jobs of work, and SMEs with less than 250 employees, which mark the rate of decline in employment and depend on “immediate and more ambitious” aid than temporary employment regulation files (ERTE).