August Unemployment Rates Show Minor Increase Amid Historical Context
The latest data from the Ministry of Labor and Social Economy reveals a modest increase in unemployment in August, with an additional 21,884 individuals registering as unemployed compared to the previous month, marking an increase of 0.8% in percentage terms. This shift brings the total count of unemployed individuals to 2,572,121— the lowest number for an August since 2008. The Ministry has highlighted that the rise in unemployment this August is the least significant since 2016 when the number grew by 14,453.
Historically, unemployment has decreased in August on 23 occasions out of the last 29 years since the beginning of the comparable historical series in 1996. There have been only six instances where unemployment rose in August, notably in 2008 during a financial crisis that saw a staggering increase of 103,000 individuals. In contrast, the most significant decrease occurred in 2021, with 82,583 fewer unemployed.
From a seasonally adjusted standpoint, registered unemployment actually decreased by 7,724 individuals this August. Over the past year, there has been a notable decline in unemployment, totaling 130,579—a 4.8% drop. Female unemployment decreased by 78,783 women, reflecting a similar 4.8% reduction, while male unemployment also saw a decline of 51,796, similarly reflecting a 4.8% decrease.
While unemployment increased among both genders, the services sector was primarily responsible for this rise, where 20,189 more individuals registered as unemployed (11% increase). Construction and industry also saw notable increases, with 4,187 (21%) and 2,995 (15%) more unemployed, respectively. Only the agriculture sector reported a decrease, with 2,337 fewer unemployed (26%).
The youth demographic under 25 years old has observed a 12% increase in unemployment, with 2,186 more individuals without jobs compared to the end of July. However, the total number of unemployed people in this age group stands at 177,112—a record low for an August, marking 40 consecutive months of year-on-year declines.
Regionally, unemployment rose across 13 autonomous communities, with only four showing a decrease, notably the Canary Islands and Extremadura. The largest monthly increases were seen in Catalonia (8,707), the Valencian Community (3,459), and the Basque Country (3,298). In contrast, unemployment decreased in 12 provinces, with Málaga leading the way (499 fewer unemployed).
Furthermore, recorded contracts for August have dropped significantly, totaling 1,040,159—down nearly 45% from August 2023. Of these, 389,735 were permanent contracts, which reflects a 6.97% decrease compared to last year. Meanwhile, temporary contracts accounted for 625,424, representing a 29% drop compared to the same period last year.
Spending on unemployment benefits saw a notable increase, with expenditures reaching 18,807 million euros in July, marking 5.6% growth from the previous year. The average monthly expenditure per beneficiary stood at 1,062.8 euros, showing a rise of 4.1%, with the total number of beneficiaries hitting 1,804,488, a 14% increase from the previous July.
Despite these challenges, the unemployment coverage rate has improved, rising to 75.5% as of July 2024 compared to 70.82% a year prior. This is the highest rate for July since 2010, showcasing a slight cushion for those affected by unemployment amid ongoing economic fluctuations.
Overall, while the rise in unemployment in August is concerning, the historical context shows improvement in recent years, emphasizing the resilience of the labor market in the face of ongoing challenges.
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