vacancies

Spain presents a phenomenon that at first glance seems contradictory: although it maintains one of the highest unemployment rates among advanced countries, it also registers one of the lowest proportions of vacancies in the EU. Understand this paradox It requires looking beyond the numbers and analyzing how employment supply and demand really work in the Spanish labor market. According to According to the INE, the unemployment rate in Spain is 10.5%, being the highest in the OECD compared to other developed countries, where the average is around 4.5%. At the same time, according to data According to Eurostat, the vacancy rate in Spain is only 0.9%, well below the European average of 2.1%. What is a vacancy? To understand why this combination occurs, it is helpful to define what a vacancy is. In the Eurostat definition This does not equate to “positions that the country would generally need to fill”, but to “newly created, vacant or about to become vacant paid position for which the employer is taking active steps and is willing to take additional steps to find a suitable candidate outside the company, and which the employer intends to fill immediately or within a specified period for which there is an active search and with an intention to fill soon.” So it is not “everything that would need to be hired in general”, but rather what is open at that moment. It’s like a photo of that exact moment, but it doesn’t show its reality. The “logic” behind the paradox. When a labor market grows, many vacancies can be expected to arise because there is more demand for workers. If, in addition, there is little unemployment, that demand tends to translate quickly into contracts. However, in Spain the reality is different. Although employment has grown in recent years, and there are busier people than ever (with membership records to Social Security), unemployment remains high compared to the EU, and vacancies do not increase at the expected rate. Mismatches between labor supply and demand. A key factor noted in the official reports is the mismatch between the skills that companies demand and those offered by unemployed people. That is, it can there are positions availablebut not that they correspond to the skills of those seeking employment. This type of mismatch is reflected in specific sectors (technology, engineering, health care) where companies claim to have difficulties find suitable profileswhile at the same time there are workers who cannot find a job. Some economists also highlight that the available offers tend to concentrate in sectors with high seasonality and little stability, such as services or tourism, where many vacancies are seasonal or short-term, which does not encourage all the unemployed to join immediately. Poorly distributed employment. Another element to consider is labor mobility. In Spain, there is a great imbalance between the territories with the greatest job offer and those with the greatest demand for employment. That is to say, employment is concentrated in large cities and industrial areas, while unemployment figures skyrocket in rural areas and in emptied Spain, contributing to maintaining this mismatch between the location of supply and demand. On the other hand, the stagnation of vacancies can also be explained by the high labor market rotation. Many times the position remains current and what happens is that it is the employees who rotate through that position. The job is still there, but it does not always appear as a “new vacancy” in the statistics, so the vacancy rate may be low, although real employment grows due to the high turnover of that position.​ For example, a waiter position is not listed as vacant, but the restaurant hires a new employee for that position every few months. The position is not vacant for statistical purposes, but the labor market does not stop registering new hires. What does this paradox tell us? That Spain has a lot of unemployment and few vacancies compared to the EU does not mean that there are no jobs available. What it indicates is that the labor market is functioning with difficulties: positions offered do not always fit the profile of unemployed people, there are great differences between sectors and an important part of the employment is temporarywhen many workers seek stability. Therefore, even when there are vacancies, they do not always end up being consolidated in the form of contracts. This situation does not depend only on a specific economic moment of prosperity or crisis, but also on underlying problems in the Spanish labor market. That this paradox continues over time points to the need to improve training, facilitate mobility between sectors and territories, raise the quality of employment and have statistics more adjusted to the reality of the labor market in Spain. In Xataka | In Belgium you could collect unemployment indefinitely. Your government has a new idea: put everyone to work Image | Unsplash (Mika Baumeister)