Spain | LFS 4Q20: improvement in the labour market continued, despite the health situation

Summary

Employment grew by 167,400 (-3.1% YoY), but 815,600 people worked fewer hours than usual due to ERTE or partial unemployment. The moderate increase in the labour force helped the unemployment rate to fall to 16.1%. In 2020, 576,900 jobs were destroyed (-2.9%) and the unemployment rate rose to 15.5%.

Key points

• Key points:
• Employment recovery continued and the ERTEs played a cushioning role
• Labour force participation rebounded less than expected, which reduced the unemployment rate
• Despite the extraordinary employment protection mechanisms, the labour market was not immune to the pandemic in 2020
• The Balearic and Canary Islands were at the forefront of job destruction in 2020 due to the impact of the health crisis on tourism

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