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In June, the labor recovery slows down with a rise of unemployment in Granada

Granada's record-breaking employment levels last May were not halted by runaway inflation or the insane prices of gasoline and electricity.

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In June, the labor recovery slows down with a rise of unemployment in Granada

Granada's record-breaking employment levels last May were not halted by runaway inflation or the insane prices of gasoline and electricity. The Ministry of Labor and Social Economy made this Monday's statistics public, showing a rise of unemployment in June against the national trend. This scuttles the prospects of recovery and raises questions about the tourism season.

After two months of Granada stepping on the accelerator for employment, June brings a bucket of coldwater with an increase in 257 unemployed in the virtual queue to unemployment in the province that registers 80.738 applicants. Granada saw a 0.3% increase in unemployment, which is lower than the Andalusian average of 0.84%. This month, Granada was the only community to have negative records with 6,345 job-seekers.

In June, job creation was also slowed down by a drop of 0.15% at Social Security affiliation. This loss resulted in 522 Social Security contributors being lost and a decrease in the number of people employed in the province who drive the system's car to 350,758.

The June labor indicators' behavior is not only inconsistent with the national evolution (where enrollment has increased by 0.57% and unemployment has continued to drop by 1.45%), but it also contradicts the usual June trend in Granada. Except for 2020, which is still affected by activity restrictions, it would be necessary to go back to 2008 in order to find a negative June month for the labor market.

Despite the arrival of the tourist season the pace of job creation is slowing. In June, only 187 people were removed from unemployment. Construction (-36) had discrete positive numbers.

The group with no previous employment sees unemployment rise (239). Agriculture registers the greatest rebound in June, which adds 342 candidates. Gustavo Rodenas, director of Agrifood Cooperatives Grenadines says that while the asparagus season ends and vegetable and fruit activity decreases along the Granada coast, employment should be compensated by the entry into production at the farms in Zafarraya, the North zone, and remain stable."

They could not find any explanations for yesterday's rise in unemployment in Granada. This was at a time when many companies are "looking for staff" and can't find it. "It's not normal, we're doing some wrong or we haven’t managed it right," said the president of the Federation of Hospitality and Tourism of Granada Gregorio Garcia. He also shared his reflections with the Tourism Council of the Confederation of Entrepreneurs of Entrepreneurs of Andalusia.

Daniel Mesa (general secretary of CC OO Granada) uses the June data to critique the fact that despite a good tourist performance, the hotel sector is not generating jobs "but rather increasing workloads, and prolonging working hours."

Mesa insists that wages must be increased and workers' purchasing power guaranteed in order to stimulate internal consumption. He also urged co-responsibility by the employer for the creation of "a framework for quality labor relations". Mesa warns in this context that the CCOO will fight for "agreement per agreement and sector per sector" at the negotiating table, in order to achieve "decent wage" and foreshadowed an "autumn of high labor conflict" if it doesn't change its mind.

The Granada Confederation of Businessmen expresses concern over the "delicate situation" in which businesses find themselves after two years of pandemic. They are "fully suffering the consequences of inflationary crises", which has slowed job creation.

Contrary to national trends, the alarms have been triggered by the rise in unemployment in Andalusia (Granada) and Granada. Santiago Carbo, an economist, believes that there is no need for "dramatizing" June's data. It is marginal because the growth in employment in Spain and Granada has not been significant. Andalusia has already seen a quicker recovery in employment than Spain through 2022, and July and August will likely bring about similar positive results. The summer season is now, and hiring will increase significantly. He also stated that it is positive that permanent contracts are becoming more common in comparison to temporary ones in statements to IDEAL.

"We are in a very difficult situation, which not only affects the citizens but also the companies. The inflation is having an effect on our income statement two ways. Higher costs, which are in many cases not being transferred into final prices, and the fall in real sales due the drop in consumption," Maria Vera, general secretary of CGE, stated. Vera considered the June unemployment figures "cool" to indicate the possibility of recovery.

"We are in a very difficult situation. The efforts of companies to maintain employment and activity, even at the expense of profitability, have yielded results. But, the CGE general secretary warns that the prolonged escalation in inflation and business costs could end the positive trend.

He concludes that "It is crucial that public administrations now take measures to boost economic activity, and limit the effect of inflation on many companies' viability,"

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