spanish labour market monitor - asempleo.com · 01 issue no. 111 | october 2016 social security...

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01 Issue No. 111 October 2016 | Social Security enrolment maintained the same rate of job creation as in September, at 3% YoY. The Afi-ASEMPLEO SLM Indicator points to job creation of 280,000 in EPA (labour force survey) terms in 3Q16 and a 1.3 pp fall in the unemployment rate to 18.7%. The final quarter of the year will be characterised by a slight slowdown in job creation, in line with the signs of weakening in the economy. The September Social Security enrolment data show a monthly increase in employment of 12,000. In a month with unfavourable seasonality, this figure means that job creation maintains a cruising speed of 3% YoY for the third consecutive month, leaving behind the slowdown seen in the spring. Though the job losses in August were larger than in previous years, the net change in Social Security enrolment in 3Q16 (down 48,000) was an improvement on 3Q15 (net loss of 66,000). The Afi-ASEMPLEO SLM Indicator points to growth of 280,000 in EPA employment in 3Q16, notably more than the 180,000 in the same quarter last year, due mainly to the exceptional tourist season. The EPA unemployment rate is estimated to have fallen from the 20% of 2Q16 to 18.7% in 3Q16, a fall of 1.3 percentage points (pp). This fall would only be comparable to those seen in 3Q15 (-1.2 pp) and 2Q15 (-1.4 pp). For the final quarter of 2016, the Afi-ASEMPLEO SLM Indicator points to a slight slowdown in job creation, in line with the signs of weakening in the economy indicated by the recent leading indicators. These projections show that EPA job creation will have averaged around 3% in 2016 (with GDP growth of 3.2%, according to Afi's forecast) and the unemployment rate for the year as a whole could be 19.6%. The unemployment rate is estimated to have fallen by 1.3 percentage points in 3Q16, to 18.7% EPA employment (thousands) Copyright Afi-ASEMPLEO. Todos los derechos reservados. 2016. SLM monthly forecast of workers in employment (% YoY change) Source: Afi. (*) Oct 2016-Dec 2016 figures are forecasts Source: EPA (INE) and Afi forecasts Labour Market Monitor Spanish Key points of the month 2.9 3.0 3.0 2.9 3.0 3.0 3.1 3.1 3.1 3.0 3.0 3.0 3.2 3.3 3.2 2.9 2.8 3.2 3.1 2.9 2.9 2.8 2.7 2.6 0 1 2 3 4 Jan Feb Mar Abr May Jun Jul Aug Sep Oct Nov Dec Jan-15/Dec-15 Jan-16/Dec-16 (*) 17.030 17.161 17.230 17.135 16.951 17.353 17.504 17.569 17.455 17.867 18.049 18.094 18.030 18.301 18.584 15.750 16.250 16.750 17.250 17.750 18.250 18.750 1Q 2Q 3Q 4Q 2013 2014 2015 2016 Forecast

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Page 1: Spanish Labour Market Monitor - asempleo.com · 01 Issue No. 111 | October 2016 Social Security enrolment maintained the same rate of job creation as in September, at 3% YoY. The

01

Issue No. 111 October 2016|

Social Security enrolment maintained the same rate of job creation as in September, at 3% YoY.

The Afi-ASEMPLEO SLM Indicator points to job creation of 280,000 in EPA (labour force survey)

terms in 3Q16 and a 1.3 pp fall in the unemployment rate to 18.7%.

The final quarter of the year will be characterised by a slight slowdown in job creation, in line with the

signs of weakening in the economy.

The September Social Security enrolment data show a

monthly increase in employment of 12,000. In a month

with unfavourable seasonality, this figure means that job

creation maintains a cruising speed of 3% YoY for the

third consecutive month, leaving behind the slowdown

seen in the spring. Though the job losses in August were

larger than in previous years, the net change in Social

Security enrolment in 3Q16 (down 48,000) was an

improvement on 3Q15 (net loss of 66,000).

The Afi-ASEMPLEO SLM Indicator points to growth of

280,000 in EPA employment in 3Q16, notably more than

the 180,000 in the same quarter last year, due mainly to

the exceptional tourist season. The EPA unemployment

rate is estimated to have fallen from the 20% of 2Q16 to

18.7% in 3Q16, a fall of 1.3 percentage points (pp). This

fall would only be comparable to those seen in 3Q15 (-1.2

pp) and 2Q15 (-1.4 pp).

For the final quarter of 2016, the Afi-ASEMPLEO SLM

Indicator points to a slight slowdown in job creation, in

line with the signs of weakening in the economy indicated

by the recent leading indicators. These projections show

that EPA job creation will have averaged around 3% in

2016 (with GDP growth of 3.2%, according to Afi's

forecast) and the unemployment rate for the year as a

whole could be 19.6%.

The unemployment rate is estimated to have fallen by 1.3 percentage points in 3Q16, to 18.7%

EPA employment (thousands)

Cop

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6.

SLM monthly forecast of workers in employment (% YoY change)

Source: Afi. (*) Oct 2016-Dec 2016 figures are forecasts

Source: EPA (INE) and Afi forecasts

Labour Market MonitorSpanish

Key points of the month

2.9 3.0 3.0 2.9

3.0

3.03.1

3.1 3.1 3.0 3.0 3.03.2 3.33.2

2.9

2.8

3.23.1

2.9 2.92.8 2.7 2.6

0

1

2

3

4

Jan Feb Mar Abr May Jun Jul Aug Sep Oct Nov Dec

Jan-15/Dec-15 Jan-16/Dec-16 (*)

17

.03

0

17

.16

1

17

.23

0

17

.13

5

16

.95

1 17

.35

3

17

.50

4

17

.56

9

17

.45

5 17

.86

7

18

.04

9

18

.09

4

18

.03

0

18

.30

1

18

.58

4

15.750

16.250

16.750

17.250

17.750

18.250

18.750

1Q 2Q 3Q 4Q

2013 2014 2015 2016

Forecast

Page 2: Spanish Labour Market Monitor - asempleo.com · 01 Issue No. 111 | October 2016 Social Security enrolment maintained the same rate of job creation as in September, at 3% YoY. The

YoY growth in Social Security enrolment again

accelerated slightly (to 3.04%), with a monthly rise of

some 12,000. Comparing this change with the same

month last year, three factors can be seen to coexist.

Firstly, stronger growth in employment in employment-

related activities, extractive industry and construction.

Secondly, there were fewer enrolment losses in hotels &

catering, due to the longer summer season, and in public

administration, due probably to the regional election

campaigns. Thirdly, the agrarian enrolment scheme

contributed an additional 28,000 jobs, though this

behaviour is normal in September.

Registered unemployment, on the other hand, continues

to fall at a YoY rate of 9.1% (an increase of 22,800 on the

previous month), while the growth in recruitment was

more contained (up 6.2% YoY). Nevertheless, the

dynamism of permanent and full-time hiring (up 11.8%

and 9.2% YoY respectively) is notable.

02

Mediation is the secret

It may be hard to believe, but the Spanish labour market has shown the same dynamism in the first three quarters of 2016 as it did in 2015. Moreover, in the third year of the employment recovery, certain phenomena are showing particular strength. One of the most significant is the active mediation between supply and demand for temporary labour, which is finding a vector of growing dynamism in the employment agencies, especially through the path of full-time hiring. In addition, while it is true that employment in general, both temporary and permanent, is being "masculinised" while registered unemployment is being "feminised", the mediation carried out by these agencies is concentrated among men of all ages.

The Spanish labour market has yet to identify the policies needed to reduce this duality to the minimum required from a functional point of view and meanwhile it is temporary employment that offers workers most opportunities for integration into the labour market. The recent data discussed below clearly show how active mediation is advancing rapidly, because it provides better results.

Hence, while we await real policies to reduce the duality in the Spanish labour market, we should continue to improve the active mediation mechanisms. The employment agencies will be capable of playing a greater role in mediating permanent employment than they do today, with the same effectiveness and efficiency that they do in temporary employment, when they are allowed to do so. They are already doing it to the extent permitted by the current scant regulatory incentives to stimulate permanent employment.

Issue No. 111 October 2016|

Since the onset of the economic and employment recovery, the sector of

employment-related activities, i.e. the temporary work agencies and the

employment agencies, has had a very favourable performance. Not only has it

managed to outperform the extraordinary growth in employment in the Spanish

economy as a whole, but it has become the sector which has directly created most

jobs since 2012. With regard to the average number of workers enrolled with the

Social Security between January and August (latest data available) in the general

and self-employed schemes, the number of workers hired in this sector increased

by 53.6% between 2012 and 2016 (compared to the average of 3.2% for all sectors

in the same period), to almost 176,000 today.

As noted above, this is the number of people who work directly in this sector as

mediators between job-seekers and companies seeking to fill vacancies. The

figure does not include those workers who found jobs with the aid of these

professionals. There are no statistics on such workers, but their number must have

increased greatly over the same period, judging by the growth in the numbers of

contracts mediated by temporary work agencies.

The employment agencies are those that create most jobs in the recovery phaseSince the onset of the economic and employment recovery in 2012, the sector has managed to increase the number of contracts it mediates by over 60% and its penetration rate by 2.8 pp. This increase has been higher in full-time contracts with men in practically all age groups.

03

Issue No. 111 October 2016|

Source: Ministry of Employment and Social Security

Variation in Social Security enrolment (general and self-employment schemes, Jan-Aug average) in 2016

Is it just chance?

It is not by chance that the employment agencies (EA) are leading job creation for yet another year. This provides more arguments to support the idea that the EA are a key component of an economy's employment recovery, especially in an economy like Spain's, which needs all its agents to find jobs for the great pool of unemployed workers that currently exists. Spain is the country seeing the greatest growth in employment agencies during the economic recovery and, if there are no surprises, we will once again experience the fastest creation of jobs in the eurozone. Temporary employment in Spain is a factor directly related to our economic structure and hence responds to the strong need for flexibility in our economy. However, we are undoubtedly speaking of temporary employment that responds directly to temporary causes and covers vacancies that are not permanent. In other words, professionalised management of temporary labour is one more way out of unemployment and a stepping stone into the labour market (in our case, 30% of those who join the labour market through an EA secure a permanent job. Thus, increased professional management of temporary work in Spain (bearing mind that the employment agencies handle only 18% of temporary work in Spain) would have a very positive effect on job creation in particular and on the economic recovery in general. This, together with greater efforts in job placement by organisations in both the public and private sectors, would stimulate the Spanish recovery above the rates currently being experienced.

Soc. Sec. enrolment (YoY growth %)

Reg

iste

red

un

em

plo

ym

en

t (Y

oY

gro

wth

%)

Cop

yrig

ht A

fi-A

SEM

PLEO

. Tod

os lo

s de

rech

os re

serv

ados

. 201

6.

Cop

yrig

ht A

fi-A

SEM

PLEO

. Tod

os lo

s de

rech

os re

serv

ados

. 201

6.

Social Security enrolment (general and self-employment schemes, 2012 = 100, Jan-Aug average)

Source: Ministry of Employment and Social Security

Andreu Cruañas. President of Asempleo José Antonio Herce, Associate Director Afi

Source: Ministry of Employment and Social Security

The employment agencies are those that create most jobs in the recovery phase...

Labour Market MonitorSpanish The Specialized

Labour Market ReviewAfi-ASEMPLEO SLM ‘clock’ 2014-2016

The assessment of The highlight of

-10

-9

-8

-7

-6

-5

-4

-3

-2

-1

0

0 1 2 3 4

January 14 (0.0; -3.3)

Sep 16 (3.0; -9.1)

0

20

40

60

80

100

120

140

160

180

2012 2013 2014 2015 2016

Employment-related activities Total

Pos Sector Var. 2016/12

1 Employment-related activities 53.6%

2 Metal minerals extraction 40.7%

3 Administration 34.6%

4 Other prof., scient., and tech., activities 31.6%

5 IT and consultancy 29.8%

6 Head office activities 29.3%

7 Decontamination 28.8%

8 Real estate 26.2%

9 Offshore organisations 25.0%

10 Sport, recreation & entertainmen 21.8%

Page 3: Spanish Labour Market Monitor - asempleo.com · 01 Issue No. 111 | October 2016 Social Security enrolment maintained the same rate of job creation as in September, at 3% YoY. The

YoY growth in Social Security enrolment again

accelerated slightly (to 3.04%), with a monthly rise of

some 12,000. Comparing this change with the same

month last year, three factors can be seen to coexist.

Firstly, stronger growth in employment in employment-

related activities, extractive industry and construction.

Secondly, there were fewer enrolment losses in hotels &

catering, due to the longer summer season, and in public

administration, due probably to the regional election

campaigns. Thirdly, the agrarian enrolment scheme

contributed an additional 28,000 jobs, though this

behaviour is normal in September.

Registered unemployment, on the other hand, continues

to fall at a YoY rate of 9.1% (an increase of 22,800 on the

previous month), while the growth in recruitment was

more contained (up 6.2% YoY). Nevertheless, the

dynamism of permanent and full-time hiring (up 11.8%

and 9.2% YoY respectively) is notable.

02

Mediation is the secret

It may be hard to believe, but the Spanish labour market has shown the same dynamism in the first three quarters of 2016 as it did in 2015. Moreover, in the third year of the employment recovery, certain phenomena are showing particular strength. One of the most significant is the active mediation between supply and demand for temporary labour, which is finding a vector of growing dynamism in the employment agencies, especially through the path of full-time hiring. In addition, while it is true that employment in general, both temporary and permanent, is being "masculinised" while registered unemployment is being "feminised", the mediation carried out by these agencies is concentrated among men of all ages.

The Spanish labour market has yet to identify the policies needed to reduce this duality to the minimum required from a functional point of view and meanwhile it is temporary employment that offers workers most opportunities for integration into the labour market. The recent data discussed below clearly show how active mediation is advancing rapidly, because it provides better results.

Hence, while we await real policies to reduce the duality in the Spanish labour market, we should continue to improve the active mediation mechanisms. The employment agencies will be capable of playing a greater role in mediating permanent employment than they do today, with the same effectiveness and efficiency that they do in temporary employment, when they are allowed to do so. They are already doing it to the extent permitted by the current scant regulatory incentives to stimulate permanent employment.

Issue No. 111 October 2016|

Since the onset of the economic and employment recovery, the sector of

employment-related activities, i.e. the temporary work agencies and the

employment agencies, has had a very favourable performance. Not only has it

managed to outperform the extraordinary growth in employment in the Spanish

economy as a whole, but it has become the sector which has directly created most

jobs since 2012. With regard to the average number of workers enrolled with the

Social Security between January and August (latest data available) in the general

and self-employed schemes, the number of workers hired in this sector increased

by 53.6% between 2012 and 2016 (compared to the average of 3.2% for all sectors

in the same period), to almost 176,000 today.

As noted above, this is the number of people who work directly in this sector as

mediators between job-seekers and companies seeking to fill vacancies. The

figure does not include those workers who found jobs with the aid of these

professionals. There are no statistics on such workers, but their number must have

increased greatly over the same period, judging by the growth in the numbers of

contracts mediated by temporary work agencies.

The employment agencies are those that create most jobs in the recovery phaseSince the onset of the economic and employment recovery in 2012, the sector has managed to increase the number of contracts it mediates by over 60% and its penetration rate by 2.8 pp. This increase has been higher in full-time contracts with men in practically all age groups.

03

Issue No. 111 October 2016|

Source: Ministry of Employment and Social Security

Variation in Social Security enrolment (general and self-employment schemes, Jan-Aug average) in 2016

Is it just chance?

It is not by chance that the employment agencies (EA) are leading job creation for yet another year. This provides more arguments to support the idea that the EA are a key component of an economy's employment recovery, especially in an economy like Spain's, which needs all its agents to find jobs for the great pool of unemployed workers that currently exists. Spain is the country seeing the greatest growth in employment agencies during the economic recovery and, if there are no surprises, we will once again experience the fastest creation of jobs in the eurozone. Temporary employment in Spain is a factor directly related to our economic structure and hence responds to the strong need for flexibility in our economy. However, we are undoubtedly speaking of temporary employment that responds directly to temporary causes and covers vacancies that are not permanent. In other words, professionalised management of temporary labour is one more way out of unemployment and a stepping stone into the labour market (in our case, 30% of those who join the labour market through an EA secure a permanent job. Thus, increased professional management of temporary work in Spain (bearing mind that the employment agencies handle only 18% of temporary work in Spain) would have a very positive effect on job creation in particular and on the economic recovery in general. This, together with greater efforts in job placement by organisations in both the public and private sectors, would stimulate the Spanish recovery above the rates currently being experienced.

Soc. Sec. enrolment (YoY growth %)

Reg

iste

red

un

em

plo

ym

en

t (Y

oY

gro

wth

%)

Cop

yrig

ht A

fi-A

SEM

PLEO

. Tod

os lo

s de

rech

os re

serv

ados

. 201

6.

Cop

yrig

ht A

fi-A

SEM

PLEO

. Tod

os lo

s de

rech

os re

serv

ados

. 201

6.

Social Security enrolment (general and self-employment schemes, 2012 = 100, Jan-Aug average)

Source: Ministry of Employment and Social Security

Andreu Cruañas. President of Asempleo José Antonio Herce, Associate Director Afi

Source: Ministry of Employment and Social Security

The employment agencies are those that create most jobs in the recovery phase...

Labour Market MonitorSpanish The Specialized

Labour Market ReviewAfi-ASEMPLEO SLM ‘clock’ 2014-2016

The assessment of The highlight of

-10

-9

-8

-7

-6

-5

-4

-3

-2

-1

0

0 1 2 3 4

January 14 (0.0; -3.3)

Sep 16 (3.0; -9.1)

0

20

40

60

80

100

120

140

160

180

2012 2013 2014 2015 2016

Employment-related activities Total

Pos Sector Var. 2016/12

1 Employment-related activities 53.6%

2 Metal minerals extraction 40.7%

3 Administration 34.6%

4 Other prof., scient., and tech., activities 31.6%

5 IT and consultancy 29.8%

6 Head office activities 29.3%

7 Decontamination 28.8%

8 Real estate 26.2%

9 Offshore organisations 25.0%

10 Sport, recreation & entertainmen 21.8%

Page 4: Spanish Labour Market Monitor - asempleo.com · 01 Issue No. 111 | October 2016 Social Security enrolment maintained the same rate of job creation as in September, at 3% YoY. The

Issue No. 111 October 2016|Issue No. 111 October 2016|

By provinces, those where the penetration rate of temporary work agencies

was already very significant in temporary labour hiring are those which have

seen the greatest increases in the recovery phase in the Spanish labour

market, allowing them to reinforce their labour mediation role. Thus, the

outstanding cases are those of Guadalajara, Murcia and Palencia, where the

penetration rates exceed the 40% threshold. The latter province, together with

Cadiz, is where the rate has increased most over the past four years (over 11

pp).

At the other extreme, the lowest penetration rates are found in the two

provinces of Extremadura, some Andalusian provinces and the Balearic

Islands, even though they do not have the lowest incidences of temporary

employment, but rather the contrary. Lastly, it should also be noted that the

penetration rate of temporary work agencies has declined in Salamanca and

Teruel, though this coincides with a lack of dynamism in job creation (since

2012, Social Security enrolment has remained flat in the former and fallen in

the latter).

Continuing with the same period of analysis (in this case the year-to-date figures for

August of each year), it can be seen that the number of temporary contracts

mediated by temporary work agencies has grown from 1.2 million in 2012 to 2.1

million in 2016, a rise of 66.1%. This growth, as noted above, is consistent with the

increase in the number of workers employed in the sector.

As a result of this higher growth in contracts mediated, the sector has been able to

increase its penetration rate (i.e. temporary contracts mediated by temporary work

agencies as a percentage of total contracts signed). Over the same period, this

indicator has risen from 15% to 17.8%, an increase of 2.8 pp.

As well as increasing the number of contracts and the penetration rate, the sector has

also managed to mediate a higher share of quality temporary jobs. For example, the

penetration rate of temporary work agencies in full-time contracts has risen by four

percentage points between 2012 and 2016, to 21% (somewhat more than three

percentage points above the average). In contrast, the penetration rate in part-time

temporary contracts has stagnated at 12%.

04 05

Penetration rate of temporary work agencies by length of working day in 2012 and 2016 (YTD August)

Source: ASEMPLEO, Ministry of Employment and Social Security

Contracts mediated by temporary work agencies (TWAs) and penetration rate 2012-2016 (YTD August)

Source: ASEMPLEO, Ministry of Employment and Social Security

By gender, it can be seen that the penetration rate of temporary work agencies

is generally higher among men than women; in 2012, for example, the

difference was about four percentage points. Moreover, during the recent

economic and employment recovery, the penetration rate increased most

among men (four percentage points higher in 2016 than in 2012), contributing

to widen the gender gap.

The temporary work agencies have increased their penetration rate in

practically all age groups, though particularly among the over 25s, since 2012.

Both in the 25-44 age groups and the over 45s, the penetration rate of

temporary work agencies has increased by three percentage points between

2012 and 2016. In the latter case, it is important to underline the employment

agencies' commitment to groups that experience difficulty in accessing the

labour market, such as those near retirement age.

The penetration rate has risen most in the provinces where it was highest before the recovery.

Tasa de penetración de Empresas de Trabajo Temporal por edad, 2012 y 2016 (acumulado enero-agosto)

Source: ASEMPLEO, Ministry of Employment and Social Security

... boosted by the higher number of contracts mediated and their growing penetration rate...

... for men...

... especially in full-time contracts...

... in practically all age groups.

Penetration rate of temporary work agencies by gender in 2012 and 2016 (YTD August)

Source: ASEMPLEO, Ministry of Employment and Social Security

Change (porcentualpoints), 2012-2016

9.1 / 12.06.1 / 9.03.1 / 6.00.1 / 3.0-0.1 / -3.0-3.1 / -6.0-6.1 / -9.0

Spanish average = 2.8

Penetration rate (%) 2016

Penetration rate of temporary work agencies (accumulated Jan-Aug)

Source: ASEMPLEO. Ministerio de Empleo y Seguridad Social

17.8

%

12.0

%

11.2

%

8.3%

25.5

%

11.8

%

14.7

%

1.4%

4.4%

24.0

%

20.2

%

25.3

%

2.3%

16.4

%

21.9

%

21.8

%

3.5%

3.1%

14.0

%

6.5%

15.0

%

21.9

%

4.7%

42.4

%

10.7

%

10.9

%

1.8%

9.7%

20.1

%

8.7%

22.8

%

6.5%

40.2

%29

.6%

10.6

%

47.7

%

14.9

%

19.0

%

15.8

%

12.3

%

25.9

%

9.3%

10.3

%

20.3

%19

.3%

18.6

%

23.1

%

30.1

%

20.6

%17.8

%

27.2

%

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Labour Market ReviewThe specialized Labour Market ReviewThe specialized

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13.5%

14.0%

14.5%

15.0%

15.5%

16.0%

16.5%

17.0%

17.5%

18.0%

0.0

0.5

1.0

1.5

2.0

2.5

2012 2013 2014 2015 2016

TWA contracts Penetration rate (RH axis)

17%

21%

12% 12%

0%

5%

10%

15%

20%

25%

2012 2016 2012 2016

Full-time Part-time

13%14%

17%

21%

0%

5%

10%

15%

20%

25%

2012 2016 2012 2016

Women Men

15%16% 17%

20%

11%

14%

0%

5%

10%

15%

20%

25%

2012 2016 2012 2016 2012 2016

<25s 25-44 >45s

Page 5: Spanish Labour Market Monitor - asempleo.com · 01 Issue No. 111 | October 2016 Social Security enrolment maintained the same rate of job creation as in September, at 3% YoY. The

Issue No. 111 October 2016|Issue No. 111 October 2016|

By provinces, those where the penetration rate of temporary work agencies

was already very significant in temporary labour hiring are those which have

seen the greatest increases in the recovery phase in the Spanish labour

market, allowing them to reinforce their labour mediation role. Thus, the

outstanding cases are those of Guadalajara, Murcia and Palencia, where the

penetration rates exceed the 40% threshold. The latter province, together with

Cadiz, is where the rate has increased most over the past four years (over 11

pp).

At the other extreme, the lowest penetration rates are found in the two

provinces of Extremadura, some Andalusian provinces and the Balearic

Islands, even though they do not have the lowest incidences of temporary

employment, but rather the contrary. Lastly, it should also be noted that the

penetration rate of temporary work agencies has declined in Salamanca and

Teruel, though this coincides with a lack of dynamism in job creation (since

2012, Social Security enrolment has remained flat in the former and fallen in

the latter).

Continuing with the same period of analysis (in this case the year-to-date figures for

August of each year), it can be seen that the number of temporary contracts

mediated by temporary work agencies has grown from 1.2 million in 2012 to 2.1

million in 2016, a rise of 66.1%. This growth, as noted above, is consistent with the

increase in the number of workers employed in the sector.

As a result of this higher growth in contracts mediated, the sector has been able to

increase its penetration rate (i.e. temporary contracts mediated by temporary work

agencies as a percentage of total contracts signed). Over the same period, this

indicator has risen from 15% to 17.8%, an increase of 2.8 pp.

As well as increasing the number of contracts and the penetration rate, the sector has

also managed to mediate a higher share of quality temporary jobs. For example, the

penetration rate of temporary work agencies in full-time contracts has risen by four

percentage points between 2012 and 2016, to 21% (somewhat more than three

percentage points above the average). In contrast, the penetration rate in part-time

temporary contracts has stagnated at 12%.

04 05

Penetration rate of temporary work agencies by length of working day in 2012 and 2016 (YTD August)

Source: ASEMPLEO, Ministry of Employment and Social Security

Contracts mediated by temporary work agencies (TWAs) and penetration rate 2012-2016 (YTD August)

Source: ASEMPLEO, Ministry of Employment and Social Security

By gender, it can be seen that the penetration rate of temporary work agencies

is generally higher among men than women; in 2012, for example, the

difference was about four percentage points. Moreover, during the recent

economic and employment recovery, the penetration rate increased most

among men (four percentage points higher in 2016 than in 2012), contributing

to widen the gender gap.

The temporary work agencies have increased their penetration rate in

practically all age groups, though particularly among the over 25s, since 2012.

Both in the 25-44 age groups and the over 45s, the penetration rate of

temporary work agencies has increased by three percentage points between

2012 and 2016. In the latter case, it is important to underline the employment

agencies' commitment to groups that experience difficulty in accessing the

labour market, such as those near retirement age.

The penetration rate has risen most in the provinces where it was highest before the recovery.

Tasa de penetración de Empresas de Trabajo Temporal por edad, 2012 y 2016 (acumulado enero-agosto)

Source: ASEMPLEO, Ministry of Employment and Social Security

... boosted by the higher number of contracts mediated and their growing penetration rate...

... for men...

... especially in full-time contracts...

... in practically all age groups.

Penetration rate of temporary work agencies by gender in 2012 and 2016 (YTD August)

Source: ASEMPLEO, Ministry of Employment and Social Security

Change (porcentualpoints), 2012-2016

9.1 / 12.06.1 / 9.03.1 / 6.00.1 / 3.0-0.1 / -3.0-3.1 / -6.0-6.1 / -9.0

Spanish average = 2.8

Penetration rate (%) 2016

Penetration rate of temporary work agencies (accumulated Jan-Aug)

Source: ASEMPLEO. Ministerio de Empleo y Seguridad Social

17.8

%

12.0

%

11.2

%

8.3%

25.5

%

11.8

%

14.7

%

1.4%

4.4%

24.0

%

20.2

%

25.3

%

2.3%

16.4

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21.9

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21.8

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3.5%

3.1%

14.0

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6.5%

15.0

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21.9

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4.7%

42.4

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10.7

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10.9

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1.8%

9.7%

20.1

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8.7%

22.8

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6.5%

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47.7

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14.9

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19.0

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20.3

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18.6

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2012 2013 2014 2015 2016

TWA contracts Penetration rate (RH axis)

17%

21%

12% 12%

0%

5%

10%

15%

20%

25%

2012 2016 2012 2016

Full-time Part-time

13%14%

17%

21%

0%

5%

10%

15%

20%

25%

2012 2016 2012 2016

Women Men

15%16% 17%

20%

11%

14%

0%

5%

10%

15%

20%

25%

2012 2016 2012 2016 2012 2016

<25s 25-44 >45s