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22.3 million workers: record employment in Spain or a mirage?
Spain added 232,000 Social Security contributors in May, hitting a record 22.3 million. Skeptics point to seasonality, precarious jobs and statistical window dressing.
22.3 million contributors: a record that hides precarious jobs and window dressing
Spain has reached a new all-time high of 22.3 million workers registered with Social Security in May, after adding nearly 232,000 contributors. The figure, released by the Ministry of Inclusion, Social Security and Migration, invites official triumphalism. But a closer look at the data and at the make-up of that employment suggests the story deserves several quotation marks.
The seasonal factor and job quality
The arrival of the summer season explains much of the surge. Contracts in hospitality and tourism — many of them temporary, part-time and paying subsistence wages — structurally inflate registration figures every spring. Behind the record are thousands of 'beach-bar rowers' working 14 hours in precarious conditions, as skeptics point out. Job quality remains the Achilles' heel: a high percentage of new contributors do not earn a wage that covers the cost of housing.
Massaging the figures: SEPE and regularization
Skepticism grows when examining who counts as a contributor. Mandatory internships from SEPE (Spanish Public Employment Service) courses count as contributors, as do public employment schemes and immigrant regularization programs. Critics of the official methodology estimate that these items alone may have added hundreds of thousands of people to the labor force artificially, without reflecting genuine, stable employment. In other words: half a million people are added in the blink of an eye.
Add to this that half of all workers are poor, according to recurring estimates, and that the other half will be even poorer due to price inflation — especially in housing — and the record registration looks more like an exercise in creative accounting than a real improvement in the labor market.
Time will tell whether the figure withstands scrutiny or deflates once the summer season ends.
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication.
Read the full discussion (22 replies).
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