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Elvira Martínez Chacón, Ph.D. in Economics, University of Navarra, Spain

Not a consolation

Sat, 29 Jan 2011 15:23:14 +0000 Published in Navarra Newspaper

The survey of Active Population (EPA) referring to the fourth quarter of 2010 has just been published, which allows us to make a evaluation, albeit hasty, of the status of the market of work in Navarra.

It is no consolation, it cannot be, to state that the unemployment rate is one of the lowest in Spain and 40% below the average. And it cannot be because there are 35,700 people looking for work and 1,500 of them are looking for their first employment. What has the last year been like in the labor market in Navarra?

The working-age population increased by 1,400 people, but only 1,000 people entered the labor market. In spite of this leave participation, the issue of the employed decreased by 2,500 people and 3,500 people increased the unemployment figures, with a higher incidence among men. We are more familiar with its expression in fees and these are 59.8% of activity and 11.6% of unemployment, a figure, the latter, which a year ago was 10.5%.They are not good data, although the status, I repeat, is still less negative than in Spain. More than a quarter of the employed population is hired under temporary contracts, a percentage very similar to the average for Spain. It is precisely these class contracts that are the easiest to terminate, are the ones that create the greatest insecurity for the worker and make it more difficult to make long-term decisions deadline.

What is the situation of the unemployed population profile ? All situations are hard: among young people, because they see the moment to stop working life delayed; among the elderly, because it is very difficult for them to rejoin a work space and they often have a family that often depends on their salary. More than a third are long-term unemployed, i.e., they have been looking for more than a year employment.

The recent reform of the labor market has not touched on very important aspects that would make the creation of a healthy employment more attractive, such as the scope for negotiating collective bargaining agreements or the reduction of social security contributions to position from employer; this explains the little or no effect it is having on the creation of employment. It is also known that, in the current status , for the productive system to generate employment , a growth rate of around 3% is needed, and this is not on the horizon. Thus, the publication of the figures leaves a bitter taste in the analyst's mouth.