The employers' association of small and medium-sized companies in Spain (

Cepyme

) calculates that the

continuous rise in the Minimum Interprofessional Salary (SMI)

in

Spain

, which has accumulated an increase of

52.6%

since 2016, going from 655 to 1,000 euros,

has prevented 161,000 jobs will be created

in the country and will compromise the creation of tens of thousands of jobs this year.

This follows from the study 'Repercussion of the rise in the SMI on Spanish SMEs', published this Monday, in which they regret that the last rise in this indicator to 1,000 euros "

does not fit the economic context and is especially burdensome for small businesses

, putting tens of thousands of jobs at risk.

They point out that the increase in the SMI in Spain has been

much higher than that which has occurred in other European countries

.

"In none of the large countries of the European Union has the minimum wage risen as much as in

Spain: 52.6%

since 2016, compared to

less than 15% in Germany, France and the Netherlands,

for example. Only in 5 countries of the In the EU, the SMI exceeds 50% of the average salary," they point out.

The SMI of 1,000 euros in fourteen payments (equivalent to

1,167 in twelve monthly payments

) places Spain as the

sixth country with the highest SMI in the Eurozone

, behind Luxembourg (2,257 euros), Ireland (1,775 euros), the Netherlands (1,725 ​​euros), Belgium (1,658 euros), Germany (1,621 euros) and France (1,603 euros).

In Sweden, Italy, Finland, Denmark, Cyprus and Austria there is no minimum wage, Cepyme recalls.

Spain is the

second

EU country in which

the legal SMI is higher in proportion to the average salary,

with

54.1%

, only behind Slovenia, with 56%.

In Belgium, the Netherlands, Germany, the Czech Republic, Hungary and other countries, the ratio between the minimum wage and the average wage is more than 10 percentage points lower than in Spain.

This relationship is important because "

the minimum wage is more burdensome where the average wage is lower

", such as in the

services

or

construction sectors

, where it accounts for more than 59%.

By activities, in the

Electricity and gas

sector , the minimum salary of 1,000 euros is barely

24.3% of the average salary

;

in

Finance and insurance, it is equivalent to 30.1%

;

but in the

Hospitality Industry

, the same minimum wage represents

91.5%

of the average remuneration.

There is also the circumstance that almost 6.5 million people

work in the activity sections in which the minimum wage exceeds 65% of the average wage .

"This shows that the same minimum wage can be

innocuous in some branches

of activity, but

extremely burdensome in others

," says Cepyme.

A greater impact is also perceived in those communities in which there is a greater presence of the SMI, such as

Canarias and Extremadura

-where it represents

more than 70% of their average remuneration-

or

Murcia, Andalucía and Castilla-La Mancha

(65%).

161,000 fewer low-skilled jobs

Cepyme calculates that the increase in the SMI in the last five years

has prevented the creation of 161,000 jobs

, especially in

elementary positions

, which are those that

do not require training or experience

and, therefore, have lower pay because they are less productive.

The employer explains this calculation by observing how the creation of both elementary jobs and more sophisticated jobs has evolved in the periods 2013-2016, 2016-2019 and 2019-2021.

Between

2013 and 2016

, with a stable minimum wage, the number of elementary occupations grew at the same rate as the GDP and above the more sophisticated occupations.

"Between

2016 and 2019

,

the minimum wage rose 37.4%

. Although economic growth was similar to that of the previous three years,

the creation of basic jobs slowed down

sharply. However, the creation of non-elementary jobs grew faster, which shows the different impact of the minimum wage on the different types of jobs. If the minimum wage had grown moderately, as in the previous three years,

131,600 more basic jobs could have been created

, "they calculate.

Since

2019

, the minimum wage has continued to grow.

Skilled employment was able to grow slightly, but low-skill occupations stagnated.

With a moderate minimum wage since 2019,

another 29,400 elementary jobs could have been created, "

such would be the result of having grown proportionally the same as non-elementary occupations," they estimate.

This lower job creation affected

women

more , they point out, because "in elementary occupations, female employment evolved worse than male employment in the three stages considered", compared to what happens in non-elementary jobs.

Conforms to The Trust Project criteria

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