A 2021 record for the labor market: 782,232 fewer unemployed and almost 20 million affiliates

2021 has been one of the years of greatest progress for the labor market. Registered unemployment has scored its biggest drop in a year in the historical series, with 782,232 fewer unemployed, and Social Security has added 776,478 affiliates in the last twelve months, closing December at its highest level since there are records, close to 20 millions of employed. The lifting of the most severe restrictions of the pandemic is behind one of the best closing of the year for the job market in several decades.

The annual drop of 782,232 unemployed (-20.1%), is the steepest drop in unemployment since the one recorded in 2016, when 390,534 fewer unemployed were counted. The scenario started from the panorama left by 2020, the first year of the pandemic in which the unemployment of 724,532 people, its worst figure since 2009. The December figure represents 140,142 fewer unemployed than in February 2020, before the outbreak of the health crisis.

Regarding the monthly advance, the number of unemployed persons registered in the offices of the State Public Employment Service (SEPE) fell in the last month of the year by 76,782 over November, 2.41% less, to 3.105.905; Although it still exceeds three million unemployed, it is the lowest figure for a year since 2007, before the financial crisis.

At the press conference evaluating the data, the Secretary of State for Employment, Javier Pérez Rey, remarked that it is not possible to “subtract one iota of gravity” from the more than three million unemployed, but has clarified that, at the same time, they represent “the best figure for 14 years”.

December was the tenth consecutive month with decline in the number of unemployed, the longest period in the historical series, with a cumulative fall of 902,884 people, according to data published this Tuesday by the Ministry of Labor and Social Economy.

It is the largest annual drop in the unemployed since 2016

All economic sectors cut unemployment last year, especially in the services, which left 532,670 unemployed in the year (-19.6%). They were followed by the group without previous employment, with 95,916 fewer unemployed (-27.3%), and construction, which registered a decrease of 60,209 unemployed (-18.9%). Industry and agriculture, for their part, cut their number of unemployed by 56,885 and 36,552 unemployed in 2021, with percentage falls compared to 2020 of 18% and 20%, respectively.

By sex, unemployment fell in 2021 in both, although in absolute values ​​it did so to a greater extent among women. According to Labor data, female unemployment decreased by 401,089 women compared to 2020 (-18%), compared to an annual decline in male unemployment of 381,143 unemployed (-22.9%).

In the analysis by age, unemployment among young people under 25 years decreased by 38.7% in 2021, with 140,403 fewer unemployed than in 2020, to 222,594 unemployed (it is the lowest figure in a month of December of the entire historical series). Among people 25 years of age and older, unemployment fell in 2021 by 641,829 unemployed (-18.2%).

In year-on-year terms, unemployment fell in all autonomous communities while that registered in the last month of 2021 fell in 16 autonomous communities, only increasing by Navarra (+324) The most important falls were registered in the Community of Madrid (-24,380), the Valencian Community (-18,242) and Andalusia (-14,607).

It should be remembered that the number of unemployed does not include workers under a Temporary Employment Regulation File (Erte). According to data from the Ministry of Inclusion, Social Security and Migration, 2021 closed with 102,548 Active fields (especially in the hospitality and tourism sectors), which represents a difference of almost 520,000 fewer workers than at the end of 2020 after reducing by 25% in the last two months of the year.

The preliminary data indicate that 52,863 of these employees are in total suspension and 49,685 in partial suspension. The total figure reflects that 35,000 people have emerged from this situation compared to October 31, and 3 million compared to the peak recorded during the worst moments of the pandemic.

Membership adds its largest annual increase in 16 years but 20 million are resisting

Regarding occupation, the data provided by the Ministry of Inclusion, Social Security and Migration this Tuesday points to 19,824,911 affiliates at the end of the year, the highest level in the series but which failed to reach the 20 million milestone.

December added 72,553 average affiliates over November, 0.37% more, and, although it represents a slowdown in growth (at the lowest level since May), it is the best figure of the month since 2018, while in the last year the number of employed persons has increased by 776,478, 4.08% more, its highest annual increase since 2005.

The number of affiliates also exceeds the previous level of affiliates at the beginning of the pandemic: there are 362,613 more contributors than in February 2020. As with the number of unemployed, the rise in membership is also part of the ‘chaos’ generated in the first year of the pandemic, when the covid wiped out 360,105 jobs, leading to a decline in membership for the first time after six years consecutive increments.

In seasonally adjusted terms, the number of contributors to Social Security increased in December by 70,814 workers (+ 0.3%), eighth consecutive monthly increase and the highest in this month of the entire series, up to 19,842,427 contributors. In 2021, Social Security gained 777,160 affiliates in the corrected series.

In the press conference evaluating the data, Israel Arroyo, Secretary of State for Social Security, emphasized that “2021 has been very positive in terms of employment. We have recovered the pre-pandemic level and also the growth trend has recovered with increases higher than those that occurred before the crisis. “

The General Scheme, the largest in the system, won 719,268 average affiliates last year (4.6% more), up to a total of 16.43 million employed, while the Special Scheme for Self-Employed Workers (RETA) added 56,990 new contributors (+ 1.7%) and ended 2021 with 3,328,398 employed. The Sea Regime registered 342 registrations in the year (+ 0.57%) and only the Coal Regime lost affiliates compared to 2020, a total of 121 (-10.7%).

The sectors of the General Regime that have led the increase in affiliates compared to the same month of 2020 are those who were most affected by the pandemic: hospitality (17.77%) and artistic, recreational and entertainment activities (16.24%). They are followed by information and communications (8.78%) and scientific and technical professional activities (6.84%).

On the contrary, the annual drop in average affiliation in financial and insurance activities stands out, with 6,197 fewer contributors (-2%), and in household activities as employers of domestic staff (-803 employed).

On the map, all the autonomous communities gained in 2021 average affiliates compared to 2020. In relative values, the increases in employment in Canary Islands (+ 6.4%), Balearic Islands (+ 5.5%) and Madrid (+ 4.97%). In absolute terms, Madrid led the upturn in employment in 2021, with 160,606 new affiliates, followed by Catalonia (+135,469 contributors); Andalusia (+129,596 affiliates), and Valencian Community (+84,920).

Hiring soars more than 21%

The data for the closing of the Work year on contracting indicate that in 2021 19,384,359 contracts were carried out, 3,441,298 more contracts (21.58%) than in the previous year.

The total number of contracts registered during the month of December was 1,681,550, which represents an increase of 326,403 (24.09%) over the same month in 2020. In month twelve, 173,784 work contracts of a nature were registered. indefinite, 10.33% of all contracts.

The permanent contracts for the month of December were divided, in terms of the duration of their working hours, in 109,933 full-time and 63,851 part-time. The rest, until completing the total of 1,681,550 for the month of December 2021, were 8,823 of a training nature and 1,498,943 other types of temporary contracts, where the Eventuals due to Production Circumstance (full-time) stood out with 29.10% followed by those of Work or Specific Service (full-time) with 25.87% of the total of all contracts.