October 21, 2020

Calviño sees "quite positive" elements in the evolution of the labor market in September



The acting Minister of Economy and Business, Nadia Calviño, seems not to be referred to in the face of the growing slowdown in employment in Spain. Specifically, he has said in statements after the inauguration of the «South Summit 2019» that he sees "quite positive" elements in the evolution of the labor market in September. All this, in a month in which unemployment has risen by 13,907 people, its lowest rise since 2004, despite a context of "slowing down the labor market and the economy."

Calviño stressed that the occupation and unemployment data «confirm that Spain is weathering the current context better than other countries of international uncertainty and there are still elements that show a great dynamism as the labor market ».

The head of Economy has cited among the "quite positive" elements recorded in September the increase in 460,000 people in the number of employed in the last year, the 120,000 unemployed less than a year ago and the "Remarkable dynamism" of the labor market, with interannual variation rates of 2.4%, higher than economic growth. However, he has clarified that "much remains to be done" in a context, also, of "slowing down the labor market and the economy."

Improving the disposable income of families

Regarding the decrease in household consumption despite the increase in wages, Calviño stressed that Spanish families are living an "improvement" of their income available, something "very positive" that is due to the improvement of the labor market, the rise in wages and pensions, which helps families to have a financial position "a little more relaxed."

However, this increase in disposable income is not corresponding to a "disproportionate or so high" consumption increase, since families "can save", a "positive symptom" that puts Spain in a position of "greater strength" for the future and involves a behavior "a little more aligned" with that of other surrounding countries.

«We no longer have that situation that even the Bank of Spain considered worrying months ago of a savings rate excessively reduced, ”he celebrated.

Calviño admits that growth "is slower"

Asked about whether the government will raise its growth forecast, Calviño recalled that INE has carried out a methodological review by which it has modified the GDP estimates of the last 23 years and in a "remarkable" way the last three or four years, so it will be integrated into the calculations of the Ministry of Economy, along with labor market data and others that They will come to light in the coming days, to prepare the estimates that will be included in the Budget Plan that the Government will send to Brussels on October 15.

Calviño stressed that "beyond the growth is one tenth higher or lower, the most important thing is to verify that the fundamentals of the Spanish economy are evolving in line with the forecasts and we are in a expansive phase of the economy in which quarter after quarter, it grows ».

Yes you have admitted that the growth rate "is slower", and means "slowdown", Calviño has considered that the fundamentals and the "more balanced growth" character, such as the current account balance surplus, the dynamism of the labor market, the reduction in unemployment and the "higher quality" of employment makes growth «More solid and stable» than on previous occasions.

Mind you, he said it is "Undoubtedly" that an open economy like the Spanish one "cannot be isolated if there is an episode of crisis in the international arena or if the slowdown of the European economy continues for a longer number of months or this economic cooling deepens.

Therefore, the acting Minister of Economy and Business has ensured that at a time of "instability or uncertainty" is "Doubly important" to have a government that provides "stability, credibility, prudence, common sense and manages to combine rigor in budgetary management with a great concern for the welfare of citizens." "It is what we have done in the last 15 months, it is what the vast majority of Spanish society wants and it is what we will do the next four years," he added.


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