The unemployment rate increased in July to 7,9%, 0,6 percentage points more than in June and 1,4 points more than in the same month of 2019, according to data released today by INE.
According to monthly unemployment estimates by the National Institute of Statistics (INE), provisional data also point to the unemployment rate (according to the International Labor Organization's concept) to have continued to rise in August to 8,1% , 0,2 percentage points more than the previous month, 2,2 percentage points more than three months ago and 1,7 percentage points more than a year ago.
INE also refers that, according to the final results of July, the employed population increased by 0,5% compared to the previous month, but decreased by 1,2% compared to three months before and 3,1% compared to the same month in 2019.
For August, INE estimates (provisional figures) that the employed population has registered an increase of 0,5% in relation to the previous month and of 1,3% in relation to the three months before and a decrease of 3,0% in comparison with the same month of 2019.
Regarding the rate of underutilization of work (an indicator that aggregates the unemployed population, the underemployment of part-time workers, the inactive looking for a job but not available and the inactive available but not looking for a job), INE says that in July reached 15,6%, 0,1 percentage points more than in June, 2,2 percentage points more than three months ago and 2,7 percentage points more than a year ago.
For August, INE's provisional data indicate that the rate of underutilization of work stood at 15,3%, 0,3 percentage points less than in July, 0,7 percentage points more than three months ago and 2,7 more .XNUMX percentage points year on year.
“The monthly decrease in the rate of underutilization of work this month [August] resulted, mainly, from the decrease in the number of inactive workers available but not looking for a job, which more than offset the increase in the unemployed population”, signals the INE.
The youth unemployment rate was, in turn, estimated at 26,3%, which corresponds to an increase of 0,1 percentage points compared to the July rate.
In an analysis of the impact of the Covid-19 pandemic on the results of the Employment Survey, INE says that “it is visible in the final results of July (the central month of the moving quarter covering June, July and August) the increase in the employed population in relation to the the previous month, as well as the increase in the unemployed population and the decrease in the inactive population compared to the three months before (April) and the previous month (June)”.
“The reduction in the inactive population was mainly due to the decrease in the number of inactive people available to work, but not looking for a job, most of whom started looking for a job and were therefore classified in the unemployed population”, he explains.
As he adds, “these movements are reinforced in the provisional estimates for August and are reflected in the increase in the unemployment rate (8,1%) and in the decrease in the underutilization rate (15,3%), as a result of the reduction in the number of available inactive but not looking for a job (22,8 thousand), which more than offset the increase in the unemployed population in the same period (13,3 thousand)”.
For a correct analysis of this evolution, the statistical institute points out that the public health measures taken since mid-March “have affected the normal functioning of the labor market and, consequently, the monthly estimates of employment and unemployment”.
According to the institute, the temporary closure of several companies, restrictions on the free movement of people and the closing of schools (which meant that many parents had to stay at home to take care of their children), in addition to measures such as lay off simplified, were reflected in the classification of people according to the 'Condition Faced with Work', particularly during a state of emergency.
'People previously classified as unemployed and people who effectively lost their job were (correctly, from a statistical point of view) classified as inactive if they have not actively searched for a job, due to restrictions on mobility, reduction or even interruption of channels information on job vacancies as a result of the partial or even total closure of a very significant proportion of companies», he explains.
Also, the lack of availability to start working in the reference week or in the following 15 days, if they had found a job, because they had to take care of children or dependents or because they became ill as a result of the pandemic, led to their inclusion in the inactive population.
Likewise, people previously classified as employed could not meet the criteria of the International Labor Organization (ILO), operationalized in a harmonized way in the European Union together with Eurostat, necessary to belong to this group, and are therefore considered non-employed ( that is, unemployed or inactive).
This was the case of people absent from work for an expected duration of more than three months and, at the same time, earning less than 50% of the usual salary.
As INE notes, the gradual process of de-confinement initiated in May allowed for the reopening of various economic activities and eased the rules of social isolation, allowing the fulfillment of the criteria of active job search and availability to start working.
Comments