The Government assumes that the impact of the coronavirus crisis on the labor market has left behind the worst. In the coming weeks, the summer season will activate thousands of jobs. Recovery begins with the first thing destroyed: 948,000 temporary contracts and 133,000 companies.

How many lost jobs will be recovered in the summer? No one in the government dares to make predictions. Yesterday, Social Security was confident of an intense but not quantified recovery. And he was very careful to indicate when the almost 948,000 jobs that were destroyed in March will be recovered.Which sectors will lead the recoveryThe tourism sector will be one of the engines. As a whole, the services are the ones that have carried the highest volume of jobs destroyed or suspended in an ERTE and it is expected that it will be the one that pulls the car the most. The behavior has been similar in other sectors: up to the end of May, the ten activities that registered the greatest drops in employment in March and April had positive enrollment rates in May. Among them are activities related to employment, construction of buildings or construction activities.And what type of employment will be generated these months? If the destruction was primed with temporary contracts, it is more than likely that in de-escalation it will be This type of contracting moves the market. From Fedea remember that the indefinite hiring of suspended activities has always been on social security registration under the umbrella of the ERTE. "All the dynamism will come generated by the temporary hiring that was dismissed in March or that will be hired for the summer tourist campaign," they point out. Recovery by this means is limited by the temporary nature of the contracts. UGT highlighted yesterday that 91% of contracts are temporary and only 5.3% are permanent full-time, which shows “the fragility of the job market, exhibiting a highly flexible model of precariousness, capable of massively destroying employment in a short space of time ». It is an area that falls under the jurisdiction of the Ministry of Labor. And how will workers subject to ERTE return? It is the question that the Government must decide over the next few weeks. Companies and unions are unanimous in indicating that it is necessary to look for flexible formulas for when the current term ends on June 30. Employers defend to annul the criminalization of layoffs to guarantee the survival of the business fabric, which is the one that can generate employment. The President of CEOE, Antonio Garamendi, stressed yesterday that "the communicating vessels between ERTE and de-escalation are key for employment to survive and companies to survive." How has the crisis affected companies? Since last March, the Hibernation of the economy has led to the disappearance of 133,430 companies, the vast majority of them SMEs. Fifty companies with more than 500 workers on staff have also disappeared. In total, 1.4 million companies remain alive, of which almost one million have between one and five workers. The total census has fallen back to the level of two decades ago. What will employment aid become? Social agents are already working on a relaunch of active employment policies, which until now have functioned poorly in the labor market Spanish despite receiving strong budgetary allocations.

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  • Social Security
  • CEOE
  • José Luis Escrivá
  • Valencia
  • UGT
  • Andalusia
  • Madrid
  • Catalonia
  • Unemployment

Almost six million benefitsThe de-escalation removes 387,815 people from ERTE but the labor market is experiencing the worst May in its history

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