The employers' association for SMEs believes that the Q3 EPA confirms the loss of momentum in job creation. The self-employed without employees fell by 43,000 in the quarter.
The Spanish Confederation of Small and Medium Enterprises (Cepyme) argues that the Active Population Survey (EPA) for the third quarter confirms the difficulties faced by small businesses in sustaining job creation. The increase of 73,600 employed between July and September is, in the association's view, the worst result for a third quarter since before the pandemic.
According to esdiario.com, which reports on the organisation's statement, the year-on-year employment growth has slowed to 2.1%. Cepyme links this slowdown to cost pressures that threaten the profitability of numerous businesses and even their continuity.
The association refers to data from the Bank of Spain: 63% of companies report negative or very negative effects due to rising energy costs, with a particularly strong impact on agriculture, transport, and industry. Additionally, 62% state that political uncertainty affects their activities.
During the summer, the private sector lost 16,300 employed due to the decline in self-employment. Employers without employees or independent workers decreased by 43,000 people in the quarter, with a year-on-year decline of 4.9%.
In contrast, private employment grew by 1.4% year-on-year, while the public sector accelerated to 5.8%. Cepyme clarifies the record number of employed with the growth of the population:
“The historical maximum number of employed occurs in a context where the population has also reached historical highs”
The unemployment rate has once again surpassed 10%, standing at 10.18% after rising by 0.31 points in the quarter. The association reminds that Spain shares the highest unemployment rate in the European Union with Finland. Of the 2.6 million unemployed, 19.5% (506,000 people) have been out of work for over two years, and 13.2% (342,000) for between one and two years. The unemployment rate among those under 25 years old is 23.3%.
In light of this situation, Cepyme calls for improved effectiveness of employment policies and better alignment between job supply and demand. It identifies obstacles such as access to talent, difficulties in filling vacancies, and absenteeism, which it describes as high and increasing.
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