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"Very positive" rebound in employment in the Marina Alta during the last month

August 20 from 2020 - 11: 53

The number of people affiliated with Social Security grows in the Marina Alta in the month of July, the largest increase in said month compared to June in the last decade, reaching 31 affiliates as of July 56.441, this means that the system registered 3.180 more registered workers than last month (increase of 5,97, XNUMX%). The labor market records in the month of July reflect a very positive behavior, which constitutes a "rebound" effect after three unusually negative months for the labor market, with sharp declines in registrations in March and April and hardly any growth in May and June.

Despite the fact that only the months of July 2019 and 2018 the net number of affiliates was higher (59.419 and 58.516 affiliates, which translates into an interannual variation of -5,01% and -5,35% respectively), the behavior compared to the previous month reflects this more favorable balance in the labor market. The Social Security where the most affiliates have gained in the last month is in the Special Scheme for Sea Workers (+ 13,92%) followed by the General Scheme (+ 8,38%). It should be noted that the General Regime and the Special Regime for Self-Employed Workers increased compared to June more than what was observed in the last 10 years (an increase in self-employed workers of 1,07% compared to June). It is also emphasized that the variation of affiliates with respect to the beginning of the health crisis (March) is very similar with respect to the same percentage variation of last year (around 1 percentage point in favor of the duality July-March 2019).

The number of registered unemployed in the offices of LABORA in the Marina Alta fell by 1.497 unemployed in July (-11,10%), its biggest fall in this month in relation to the last 10 years, thus the total of registered unemployed in the region it is 11.994. This positive monthly behavior is seen for the first time since the beginning of the COVID-19 crisis, although for now, it has caused strong year-on-year growth in unemployment (+ 33,10% compared to July 2019 and an increase of 9,2% regarding the precovid-19 -February- situation).

Only 5 municipalities in the region show an increase in the number of unemployed compared to June. In the Marina Alta the estimated unemployment rate stands at 17,53%, reducing by more than 2 and a half points compared to the previous month, in addition, in July it reflects the lowest estimated unemployment rate compared to the province and the Valencian Community ( 21,45% and 19,05% respectively).
Those classified without economic activity and the hospitality industry are the sections least affected by job destruction, as their unemployment figures decrease by 29,2% and 20,4% respectively compared to June, as a result of the economic recovery after the losses of employment in the hibernation period and the situation of the high season of tourism.
It should not be forgotten that the impact of the coronavirus has been cushioned by ERTEs and extraordinary aid to the self-employed due to cessation of activity. Both measures have intervened in the labor market and have sustained massive employment. In fact, the number of ERTE resolved by LABORA in the Marina Alta reached 3.485 as of July, which affected 14.367 workers.

Hires have increased in the Marina Alta by almost 117% compared to June, 3.127 more hires, with a total of 5.800. In year-on-year terms, the fall was 19,08% (compared to July 2019). Compared with the previous month, the increase in hiring has occurred in the permanent (+ 37%) and with more intensity in the temporary (+ 128,32%). In year-on-year terms, permanent hiring fell by 21,14% while temporary hiring fell by 18,9% compared to the July 2019 figures, which still reflects the strong impact on hiring of the economic stoppage as a result of the crisis of COVID-19.

During the first stages of the brutal crisis that the labor market is going through, one of the clearest signs of the paralysis of activity was a huge drop in the signing of contracts, a variable that always serves as a thermometer of labor dynamics. During the month of March, for example, hiring fell by 15,31%. In the month of April, the decrease in hiring was around 55%. In the following months, a slow recovery of this variable has been perceived, since hiring has been reactivated once the de-escalation phases have progressed and most companies have resumed activity.

Despite this recovery perceived as of May, that same month fell by 64,7% compared to the same month of 2019. In June, recruitment fell by practically 52% compared to 2019 and "only" 19% compared to July 2019. Even so, the scenario shows that in the accumulated of the first seven months of 2020, 19.662 contracts have been signed in the Marina Alta, which means 11.922 fewer contracts than those signed in the same period of 2019, a fall of 37,75 , 2020%. In short, although the hiring figures are converging month by month to those of a "normal" year, it is a slow process and it is very likely that interannual rates close to zero will not be seen during XNUMX.

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