• 'Effective' unemployment grows by 300,000 people after the labor reform to 3.5 million
  • The fall in hours worked questions the recovery of employment: those who work 42 to 2 hours grow by 4%

The Independent Authority for Fiscal Responsibility (AIReF) has admitted on Wednesday that the unemployment rate in Spain is no longer reliable to know the reality of the labor market and has opted to use alternative measures that are now "fundamental" and point out that around 18% of the active population in the country is "underutilized", That is, he wants to work but cannot do it.

In total, there would be around 4.2 million people and this group includes the unemployed (3 million), the discouraged - people who want to work but who, as they believe they will not find a job, do not seek employment - those who are working part-time because they are not full-time or because they have other obligations - for example, care-, and those who are affected by an Employment Regulation File (ERE) or Temporary Employment Regulation File (ERTE).

"Traditional unemployment no longer reflects well the underemployed resources that exist in the country, it is necessary to resort to alternative sources that are fundamental. The unemployment rate is becoming less representative of what we want to measure: that it is the people who want to work and do not work, "warned sources of the institution chaired by Cristina Herrero.

The AIReF has also warned that, in continuation of a trend that began years ago, there is a fall in hours worked in the country. Specifically, the group of employees who work 10 to 19 hours a week has grown considerably and that of those who work from 40 to 40 hours has fallen. This trend is mainly due to the increase in part-time employment, which began to grow after the 2008 financial crisis.

"It is a phenomenon that came from before due to the increase in part-time employment, both voluntary and forced. We should make an effort to better measure the hours worked because the only source we have is the EPA and it is a survey, "these sources have claimed.

After the labor reform, they have pointed out, a transition is taking place, so it is too early to draw definitive conclusions. AIReF needs to analyze in detail how employment evolves in the country.

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  • ERTE
  • Unemployment
  • Employment