Spain | Record-breaking job destruction in 2Q20 despite ERTEs, according to LFS

Summary

Employment decreased by 1,074,100 people (-6.0% y/y). However, employees who worked fewer hours than usual due to ERTEs or partial unemployment amounted to 4,580,000, so the hours worked fell by 22.6% QoQ. The decline in the labour force due to the lockdown limited the rise in the unemployment rate till 15.3%

Key points

• Key points:
• Record-breaking decrease in employment, despite the role of the temporary employment regulation schemes (ERTE) and the extraordinary cessation of activity benefit for self-employed workers as shock absorbers
• All sectors destroyed employment
• Temporary contract workers represented two thirds of the fall in employment in the quarter
• The restrictions associated with the lockdown caused an outstanding reduction in the labor force, which limited the increase in the unemployment rate
• The labor market in the islands was the most affected by the consequences of the pandemic

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