Spain: LFS for 1Q20 confirms significant impact of COVID-19 on labour market

Summary

Employment fell by 285.6k people (1.1% YoY), those employed unable to work due to Temporary Redundancy Plan (ERTE) or partial unemployment ascended to 578,3K and the unemployment rate increased to 14.4%. Seasonally adjusted, the labor dropped by -0.4% QoQ, but if we exclude those not able to work, it would reach -3.4%

Key points

• Key points:
• The use of labour force decreased substantially, both because of the job destruction and the application of ERTE or partial unemployment
• Services accounted for most of the employment adjustment
• Job destruction was concentrated on temporary contract workers
• The decline in the labour force limited the rise in the unemployment rate
• The labour market in the Balearic Islands was the most affected by the first effects of the pandemic

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