The average in the eurozone stood at 27%, according to a report by the Bank of Spain with data from Eurostat
The Spanish labor market was one of the most impacted by the first wave of the coronavirus pandemic in the eurozone with 38% of the population available for work “totally or partially unemployed” in the second quarter, the second-worst figure only behind Greece, according to a report by the Bank of Spain.
This percentage – called the extended unemployment rate and which takes into account temporary job suspensions and other concepts not included in the usual definition of unemployment – exceeded 27% in the group of euro area countries for which it is available. of data (all except Germany and Estonia), more than tripling their conventional unemployment rate.
Spain and Italy, with rates of 38% and 32%, respectively, were, together with Greece and Cyprus, above the average, while Portugal and France were slightly below, according to the report prepared with data from Eurostat.
This percentage includes, in addition to the unemployment that is taken into account on a regular basis, part-time workers who would like to work more hours (underemployed), inactive people who are available for work but could not look for a job, or people who say they are looking for work but not are available to work in addition to those affected by ERTE, explains the report.
The Bank of Spain points out that, given the impact of the pandemic in the second quarter of 2020, “conventional concepts of employment and unemployment are not enough to describe the evolution of these markets.”
Job maintenance programs, he adds, prevented possible layoffs, replacing them with temporary job suspensions and reductions in working hours, and many workers who lost their jobs were unable to look for work due to mobility restrictions, so they are not considered unemployed according to the conventional measure of unemployment.
Spain, leader of employed persons absent from employment due to ERTE
Thus, Spain led the proportion of employed persons absent from employment due to temporary suspensions, which includes the ERTE, which increased by almost 10 points compared to 6.8 points in France or 5.2 points in Italy, respectively.
” More than 18% of those employed were on a temporary suspension of employment, while in the other two large euro area countries for which data are available, this proportion did not exceed 12% “, reports the report.
The intensity of job destruction and the increase in the inactive population was also greater, they point out.
“The strong increase in unemployment understood in this broad sense, and the reductions in working hours translated into a historical decline in employment in terms of hours worked. Its intensity was very heterogeneous by country, with Spain being the main affected country”, concludes the Article.