- Employment grows mainly in services, industry and construction, and in almost every region.
- Part of the improvement is seasonal: temporary hiring weighs more than permanent hiring in the quarter.
- For companies, the recovery brings more activity and also more pressure to retain and train staff.
On 27 July 2017 the National Statistics Institute published the labour force survey for the second quarter. The number of people in work rose by 375,000 from the previous quarter, or 2.03%, to 18,813,300, the highest figure since the third quarter of 2010. The unemployed fell by 340,700, to 3,914,300, and the unemployment rate stood at 17.22%, 1.53 points lower than in the previous quarter and 2.78 lower than a year earlier.
Over the last twelve months employment has grown by 512,300 people, or 2.80%, and unemployment has fallen by 660,400, or 14.44%. The figures confirm the recovery of the labour market, but should be read with care: the second quarter is usually the one with most job creation because of the tourist and farming seasons, and the unemployment rate remains well above that of most European countries.
Where jobs are created
By sector, services add 272,400 jobs in the quarter, industry 65,700 and construction 52,100, while agriculture loses 15,200. Over the last year every sector has increased employment. By region, the largest quarterly increases are in Catalonia (72,600), the Balearic Islands (65,000) and Andalusia (53,500); only Castilla-La Mancha records a small fall.
The private sector contributes 345,100 of the quarter’s new jobs and the public sector 29,900. For Catalan companies the figure reflects a dynamic labour market: Catalonia is also the region where unemployment falls most in the quarter, with 79,200 fewer jobless. Industry, which lost weight during the crisis, has also added 139,500 jobs over the past year, a relevant figure for manufacturers and for those who depend on them as suppliers.
The quality of employment
Of the 349,500 additional employees in the quarter, 93,600 have permanent contracts and 255,900 temporary ones. Year on year, permanent employment grows by 202,800 and temporary by 299,700. The self-employed rise by 23,800 in the quarter but only by 9,200 over the year. Seasonality explains much of the weight of temporary work, although the data is a reminder that the improvement is not uniform. By age, the increase is general, except for the 30-to-34 group, which stays practically at the same level as in the previous quarter.
For a company this has practical consequences: high turnover makes training and shift management costlier, and each temporary contract has rules on duration, chaining and severance that need to be monitored. Labour reforms have changed those rules several times and the courts interpret them frequently, so reviewing current contracts avoids surprises.
What to review
With more activity and less unemployment, retaining skilled workers becomes a strategic matter. It is worth reviewing pay policy, training, work-life balance and career paths, as well as the stability of key teams. In seasonal sectors, planning hiring peaks in advance reduces costs and classification errors. It is also worth watching labour costs closely, because when demand for workers grows, wage pressure tends to appear in sectors where profiles are scarcer.
And for individuals and families, a more favourable labour market is an opportunity to reconsider decisions postponed during the crisis, such as changing jobs, extending training or starting a business. Each decision depends on personal circumstances, so it is worth weighing it calmly and with reliable information.
The recovery of employment is real, if uneven: look also at the quality and stability of contracts, not just the headline number.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
