Spain’s new employment record indicates healthy job market, says economist

BARCELONA, Spain, Oct. 29 (Xinhua) — Spain’s new employment record indicates that the country’s job market is in “very good health,” though wages remain low due to the high number of job seekers, a specialist on the Spanish labor market told Xinhua in an interview on Tuesday.
According to the National Institute of Statistics (INE), employment in Spain — a country with a population of 48.7 million — has reached a new high, with 21.8 million people currently employed, as reported last Friday.
Despite the unemployment rate falling to its lowest level since 2008, Javier Vazquez, an associate professor of economics at the University of Barcelona, said at least 11.2 percent of the active population, or over 2.75 million people, are still seeking employment, which is keeping salary levels low.
While the labor market is improving and generally in good health, persistent unemployment means many job seekers are still waiting to enter the workforce, which reduces upward pressure on wages, Vazquez told Xinhua.
The INE’s figures also revealed an increase in both fixed-term and permanent contracts. “With fewer workers on temporary contracts, we can say there is greater stability in the labor market,” Vazquez said.
Elma Saiz, minister of inclusion, social security and migration, expressed satisfaction with the employment figures, noting that 68 percent of Spain’s working-age population is currently employed.
Over the past year, unemployment has decreased by 140,400 people, or 4.8 percent, while 376,600 jobs have been created. Employment rates have now risen for 18 consecutive quarters.
Catalonia in the northeast recorded the largest increase in employment, while Valencia in the east saw the most significant job losses. ■