The impact of the labor crisis unleashed by the coronavirus in Spain now reaches 2.5 million jobs suspended through Temporary Employment Regulation Files (ERTE) , the formula launched by the Government to avoid layoffs in companies paralyzed by the alarm state of last March 14.

It is a figure that multiplies by four the last one offered by the Government , which amounted to 620,000 people. The total number of people affected by this measure that involves the suspension of the contract to receive income from the unemployment fund of the Public State Employment Service (SEPE), amounted to 2.45 million last Monday , according to the UGT , which tracks diary of the files presented by the companies both before the labor authorities of the autonomous administration and before the central administration. For their part, business sources with access to official data number more than 449,000 ERTEs submitted by companies throughout Spain since last March. CCOO aims at 450,000 with a total impact "close to three million employees."

The figures of these social agents come to suppose 19% of the number of affiliates that the general Social Security system had last February, before the virus hit the labor market.

If they are officially confirmed, they would assume that almost one in five Spanish employees has already suffered an ERTE, which means for their economic situation, for the companies that have dispensed with their workforce and for the State, which assumes the payment of a benefit that represents 70% of the regulatory base with a maximum pay of 1,098.09 euros if the beneficiary does not have children, 1,254.96 if he has one and 1,411.83 euros if he has two.

According to Work, the average benefit will amount to 860 euros, with which in current circumstances a monthly payroll would be between 2,150 and 2,580 million euros. However, in the body led by Yolanda Díaz they place the ERTE already processed around 400,000 without offering the number of workers affected . "As it is evolving, sometimes the documentation is not adequate and the process is prolonged," they explain. The autonomous communities that according to Work did not provide information "have begun to collaborate." "Not all pass their data a day but it is also understandable because everyone works a thousand percent," they justify.

According to the data collected by the UGT, the Autonomous Communities with the largest number of affected workers would be Catalonia (571,000 workers and 76,000 ERTE); Andalusia (427,000 workers and 88,250 ERTE) and Madrid (400,000 workers and 58,000 ERTE).

In any case, and despite the difference between the data collected by the social partners and the Government, the general assessment is that the scheme agreed at the social dialogue table has served to absorb the initial impact of the economic hibernation carried out by the Government to slow the spread of the virus. ERTEs offer companies affected by force majeure measures the possibility of discharging their salary and contribution obligations. In exchange, they undertake not to fire within six months .

In his presentation of the labor market data from last March, Díaz offered a number of layoffs much higher than that covered by the decree of March 18. Until the last day of the month, nearly 900,000 jobs had been destroyed, the registered unemployment had accounted for more than 300,000 discharges and the ERTE had suspended 620,000. That same day, employers and unions pointed to figures of suspended jobs that almost multiplied by three the official ones (1.8 million).

With the passage of the month, the procedures are reaching their peak. Probably, sources of the labor market point out, many ERTE will rise when the Government begins, from next Monday, to de-escalate its measures allowing non-essential sectors to return to activity. In this way, the number of people with suspended employment would be lower than the current one. "Then another debate will begin, which is that of businesses that cannot sustain the pre-coronavirus wage bill," these sources explain.

Apart from social protection, 2020 will be a year of decline in improvements in the labor market in the last five years. For Bankinter's study service, unemployment will close this year with a strong rise, reaching a rate of 16.1% compared to 13.8% at the end of 2019 .

According to the criteria of The Trust Project

Know more

  • UGT
  • Spain
  • Catalonia
  • Madrid
  • Social Security
  • CCOO
  • Yolanda Diaz
  • Andalusia
  • Unemployment

CoronavirusHow to manage the family economy during the war against the virus

COVID-19 and employment Unions ask government to consider banning layoffs due to coronavirus crisis

InterviewJavier González Lara: "If we stop everything, we will seize the engine of the economy"