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ARCHIVED - Losses in tourism sector initiate an early rise in unemployment for Murcia
Normally August is a good month for Murcia but the restrictions placed on travel to Spain have upset the apple cart all over the country
There has been no doubt since the covid lockdown began in March that 2020 was not going to be a good year for businesses, and following a summer of rising cases and falling tourist revenue, the chances of businesses being able to salvage a good autumn from the wreckage have evaporated for many business sectors.
It’s inevitable that job losses will follow this autumn, although the bulk of the cuts won´t really show until the October data is published.
Some businesses started to cut back during August, particularly in the tourist sector when the hoped-for summer visitors failed to manifest due to the quarantines imposed by principal tourist emissors (including the UK and Germany) and these first few cuts have started to show in the monthly tourism figures published on Wednesday 2nd September.
Yesterday the figures relating to the number of foreign tourists visiting Spain and the amount they spent during July were reported, showing that the country lost 75 percent of its tourists and 79 percent of its tourism revenue. Murcia fared only fractionally better, losing 71 percent of its international tourists.
The August figures are expected to be even worse as the case numbers started to rise and the number of restrictions relating to travelling to Spain, increased.
Normally August is one of the best months of the year for the region due to the number of contracts issued to service the tourism sector, but this year unemployment has risen in the Region of Murcia by 1,781 people (1.52%) at the end of of August in relation to the previous month and 22,064 in relation to 2019 (22.76%), bringing the total number of unemployed to 119,019, of which 48,956 are men and 70,063 women.
The total unemployed in the Region are divided by sector as follows; 9,984 formerly worked in the agricultural sector, 12,021 in the industrial sector, 9,614 in construction, 76,529 in services, and 10,871 have not previously worked (younger people).
The affiliation to Social Security in the Region of Murcia fell by 3,646 people compared to July, 0.62%, to a total of 584,029 affiliates, which is 1,980 less than a year earlier.
Spanish totals
Unemployment nationally increased by 29,780 people, 0.79% more. This increase places the total number of unemployed at 3,802,814, 24.04% more than a year ago, and makes this August the first in history to record an average rise in unemployment.
Registered unemployment fell in eight autonomous communities headed by Navarra (-1,078), Cantabria (-763) and Extremadura (-548) and rose in the remaining nine communities, especially in Catalonia (11,293), Madrid (6,260) and the Community Valenciana (5,694.
The number of those paying into the social security system in August was 18,792,376, which means that Spain has about 450,000 fewer affiliates on average compared to February, just before the alert status was declared and about 528,000 less contributors than a year ago,
At the worst moment of the pandemic, between March and April, almost a million jobs were destroyed, of which a third have been recovered, excluding the more than 800,000 workers who remain on ERTE temporary redundancy schemes and are therefore not classed as unemployed although are technically not employed either. In other words, most of them are simply waiting to be made formally redundant.