The National Institute of Statistics (INE) has published the Active Population Survey (EPA) for the last quarter. The employment figures in 2023 show a significant increase in the working population in Spain. The year closed with 21.2 million workers and a growth in the labor market that, according to experts, is very promising, because it may be a preview of what will happen in 2024. In total, 783,000 new jobs have been created in the last year.
What does the EPA tell us about the work to come?
The creation of jobs and the accelerated growth rate of the labor market in Spain have materialized in record rates. The year 2023 closed with a unemployment rate 11.76%, one point less than the previous year. And the unemployment fell by 193,400 people. This figure leaves the total number of unemployed at a total of 2,830,600 at the end of December, a reduction that represents more than double that produced in 2022.
Similarly, the total growth rate of employed people in 2023 increased by 3.83%. The 2022 job growth data, which ended with a total of 2.57% growth, shows a increase in active population with favorable prospects for 2024.
Furthermore, employment in 2023 favored the full time hiring. While part-time contracts experienced a rise of 87,600the increase in hiring full time amounts to 695,400 workers.
📈In 2023, 783,000 jobs will be created.
✅Employed people exceeded 21.2 million people, which represents a growth of 3.8%, almost triple that of 2022.
✅ Unemployment fell by 193,400 people, to be below 3 million unemployed. https://t.co/lIV9UkRPZP pic.twitter.com/gMg48tsdtL
— La Moncloa (@ desdelamoncloa) January 26, 2024
This market improvement is evident in a generalized reduction in unemployment in the majority of the Autonomous Communities. A positive increase in employment has been experienced throughout the national territory, led by the Autonomous Communities of Madrid and the Basque Country. The Community of Madrid occupies first place on the list of increased employment, with 67,600 more workers. However, in terms of quarterly growth figure, the Basque Country has the highest increase for the last quarter, with 2.28%.
Regarding the major decrease in unemploymentthe most significant data is collected in Andalusiawhich closes the year with 50,900 fewer unemployed.
Altogether, the Employment has grown in all sectors in the last year. The sector in which employment increased the most was Services, with 629,200 more workers, followed by Construction, with 108,300, and Industry with 28,000.
If we focus on the last quarter analyzed by the EPA, the Agriculture, Construction and Industry sectors lead the growth with 68,800, 30,700 and 4,900 more employment respectively. The Services sector was the most affected in this last quarter, with 123,400 fewer employees after the strong Christmas campaign.
Inactive population, employment rates and employed people in 2023
In order to collect the inactive population data, you must first know what type of population fits the classification stipulated by the INE in its data. According to the International Labor Organization (ILO), the inactive population refers to all persons aged 16 years or older who are not classified in the criteria of occupation or unemployment. In this category we can find students, retirees or people available to work, but not looking for a job, among other types.
Within the diverse group of inactive population, 572,400 people who were not looking for work They became part of the active population of the country in the last year. This increase translates both into registrations for employment services and incorporation into the labor market. Especially, the services sector, agriculture, industry and construction, which experienced the greatest employment growth for the inactive population.