Spain | The recovery of employment after COVID-19

Summary

As the Spanish economy was still recovering from the effects of the Great Recession, the COVID-19 crisis had a dramatic impact on its labor market, which has been the worst-performing in Europe during said crisis.

Key points

• Key points:
• During the lockdown, the unemployment rate rose to 15.3%, with just over a million employees becoming inactive and 3.4 million receiving protection by means of Temporary Redundancy Plans (ERTE), and with social security affiliation falling to a low of 18.4 million people in early April.
• Once seasonality and the calendar effect are corrected, BBVA Research estimates suggest that around 37% of the affiliates lost between March and May would have been recovered since June.
• Spain has a historic opportunity to use the Recovery Fund and look at best practices from other EU countries to lessen the chronic weaknesses of its labor market.

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