The number of unemployed in Spain fell below 3 million in May, the lowest since 2008

A worker paints a pedestrian crossing in Ronda, southern Spain, April 27, 2022. REUTERS / Jon Nazca

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MADRID, June 2 (Reuters) – The number of unemployed in Spain fell below 3 million in May for the first time since the start of the 2008/09 global financial crisis, as the economy recovered from the he impact of COVID-19 has boosted hiring and expelled many workers. of the underground economy.

The number of people registered as unemployed fell 3.29% from April, leaving 2.92 million people out of work, the lowest number since November 2008, Labor Department data showed on Thursday.

Spain added 33,366 net jobs during the month, according to separate data from the Ministry of Social Security. The number of jobs in the formal economy had already reached an all-time high in April.

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“We are seeing an extraordinary reduction in temporary jobs,” Social Security Minister Jose Luis Escriva told state broadcaster TVE, while acknowledging that rising inflation and the ripple effect of the war in Ukraine generate uncertainty.

The start of the Spanish tourist season was a factor in the positive data. The industry typically accounts for around 12% of Spain’s gross domestic product, and authorities expect tourism spending to return to pre-pandemic levels by the end of the year. Read more

The number of people in formal employment is now higher than when COVID-19 hit. The reason, according to labor experts, trade unionists, employers and workers interviewed by Reuters, is that a side effect of the pandemic has been to pull many Spaniards out of the underground economy into regular employment. Read more

The main causes were the decline in the use of cash due to pandemic-era hygiene measures, as well as the increased demand for contracts by workers who realized that going under the radar also meant missing out. vacation payments during closures.

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Reporting by Joao Manuel Mauricio in Gdansk and Inti Landauro in Madrid; Editing by Emma Pinedo and John Stonestreet

Our standards: The Thomson Reuters Trust Principles.

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