In 2021, 840,700 jobs were created; the largest job creation since 2005, according to the Labour Force Survey

The number of employed people increased last year by 840,700, which is the largest job creation since 2005, with an increase of 4.35%, according to data from the Labour Force Survey (EPA) published today by the National Statistics Institute (INE). This increase brings the total number of employed people to 20,184,900, the highest figure since 2008, highlighting the dynamism of the labour market.

This positive development is also reflected in the reduction in the number of unemployed people, which in 2021 has continued to fall significantly, by 615,900 people, or 16.6%, bringing the total number of unemployed people to 3,103,800. The unemployment rate fell by 2.8 points to 13.3%, its lowest since 2008.

The growth of the labour market in 2021 has been general across all sectors of activity and all indicators, with an increase in the active population, employment and hours worked, a reduction in unemployment and a decrease in the number of households with all members unemployed. This is a comprehensive recovery that has led to an increase in employment and a reduction in unemployment in practically all autonomous communities.

This increase in employment and reduction in unemployment has resulted in an increase in the number of active people by 224,700, reaching an activity rate of 58.6%.

This process has also been parallel to the reincorporation into their jobs of people who were on Temporary Redundancy Programmes (ERTEs). The total number of actual hours worked increased by 2.4% compared to the same period last year.

Data from the Labour Force Survey confirms that not only have the pre-pandemic employment and unemployment figures improved, but they also reflect a different pattern of recovery from previous crises, thanks to the effectiveness of the economic policy measures adopted.

Employment

In the last quarter of the year, job creation remained dynamic, with 153,900 more people employed, the third best Q4 record in the historical series, also higher than the average recorded between 2015 and 2019. In seasonally adjusted terms, the quarterly change is 1.2%.

In the fourth quarter, employment increased in Agriculture, with an increase of 78,700 workers, followed by Services, with 45,900, and Industry, with 37,100 more employed. On the other hand, employment fell in Construction, with 7,700 fewer employed.

In the last year, employment increased in all sectors, with the highest growth concentrated in the Services sector, with 705,400 more employed, followed by Industry, with 71,500 and Agriculture, with 58,000 more people working.

In terms of Autonomous Communities, Andalusia is the region in which there was the greatest increase in employment in the last quarter of the year, with 102,300 more employed, followed by the Canary Islands, with 59,600 jobs created, and the Community of Madrid, with 46,300. Employment fell in the Balearic Islands, with 73,200 fewer workers, Galicia, with 21,200 and Extremadura, with 17,600.

In the last year there was an increase in employment in all Autonomous Communities, except Ceuta. The regions where most jobs were created were Andalusia, with 166,800 more, and Catalonia with 157,600.

The private sector concentrated job creation over the last year and also in the fourth quarter. During 2021, 744,300 jobs were created in the private sector, compared to 96,400 in the public sector. From September to December, the public sector lost 8,500 employees and in the private sector employment increased by 162,500 people.

The increase in employment over the last year has been higher among workers with permanent contracts, with 425,000 more employees registered, compared to 307,700 more temporary workers. This dynamic has been more pronounced in the last quarter of 2021, where the number of permanent jobs has grown by 150,600, while temporary contracts have fallen by 92,900. As a result, the number of permanent contracts reached 12.7 million, the highest level in the entire historical series, although the temporary employment rate stood at 25.4%.

In the last year, both the number of salaried workers increased by 732,700 and the number of self-employed workers increased by 105,800.

The increase in employment over the last year has been higher among women, with 479,600 more women in employment compared to 361,100 men. This dynamic continued in the last quarter, with female employment increasing by 105,500, compared to 48,400 men.

Unemployment

Unemployment continued to fall in the fourth quarter, with a decrease of 312,900 people (-9.16%) to 3,103,800 people. In seasonally adjusted terms, the quarterly change is -7.77%. This brings the unemployment rate to 13.3%, down 1.2 p.p. over the quarter.

In annual terms, in the last year, unemployment fell by 615,900 (-16.56%), with a generalised reduction across all sectors, particularly Services, with 440,500 fewer unemployed. In the last year, the number of people who lost their job more than a year ago fell by 55,900 and those looking for their first job by 4,000.

In the fourth quarter, unemployment reduced in the Services sector by 79,000 people, in Agriculture, with 33,300 fewer unemployed and in Construction, with 25,500.

By Autonomous Community, in annual terms, unemployment fell in all except La Rioja and Ceuta. The largest decreases were in Catalonia, 142,500 fewer unemployed, Madrid, 122,500, and Andalusia, 85,500.

In the fourth quarter, those in which unemployment fell the most were Andalusia, with 87,500 fewer unemployed, followed by Madrid, with 62,900 and the Canary Islands, with 56,600 fewer unemployed.

The number of unemployed people has fallen in the quarter by 153,600 among women and by 159,300 among men, so the female unemployment rate stands at 15.04%, three points higher than for men.

In year-on-year terms, the number of unemployed reduced a little more among women, with 335,800 more unemployed women, compared with 280,100 fewer unemployed men.

Youth unemployment continues to fall, with a decrease of 0.5 points in the quarter and 9.4 points over the previous year, although it is still the highest at 30.7%.

Non official translation