October 26, 2020

The business fabric bleeds and loses 100,000 businesses in a year




The management of the pandemic continues to devour companies in Spain. When, with great difficulty, and very slowly, our country recovered business muscle, the month of August, very marked by tourism, left a drain of 8,184 companies. After this collapse they are already 100,000 business ruined in a year (August 2019-August 2020).

The economic stoppage first, and the scant support for aid later, has ended causing the suffocation of companies, especially microenterprises and self-employed employers, small businesses that are the basis of the productive fabric. Many have been forced to lay off all their workers and hopelessly lower the blind. They are the most fragile part of the entire productive fabric and their ability to survive without income and without activity is very limited in a recession in which they have had a fragile backup compared to that received in other European countries. Business support was, for example, six times less than in Germany and half that in France or Italy (measured as a percentage of GDP). And this support to the productive fabric will be decisive to activate the economic recovery.

On the last day of August there was1.39 million companies with a Social Security contribution account, the lowest figure since 2013, the year in which Spain was still struggling to emerge from the recession. The contribution accounts are an indicator similar to the one that measures affiliation; reflects the progress of business activity and is also a thermometer that gives an idea of ​​how the income of the company is Social Security, an organization affected by a deficit that already at the end of June hovered around the historical figure of 27,000 million euros, above 2.37% of GDP -more than 2% expected for the whole year-, and a debt that this year will reach 100,000 million.

The data of the department he directs Jose Luis Escrivá They confirm that the business world is very touched. During the first two months of the pandemic (March and April), a total of 142,000 companies were delisted, a disaster never seen before in history. As the de-escalation phases progressed through different parts of Spain, in May, June and July, business activity began little by little to reactivate and in this period the Social Security Treasury recovered about 55,644 contributing companies.

But the tourism debacle it was felt in employment and in the destruction of companies in August (8,184 less), in line with what has happened in the tourism sector, which scores the worst results on record. The most affected regions are also the most touristy. Catalonia lost 239,062 companies, Andalusia 230,682, Madrid, 193,629 and Valencia 150,080.

There will be a before and after March 12, 2020 in the labor market. Since then, much of the progress has been retraced in recent years, an unprecedented reversal of all economic indicators. The growing number of outbreaks of those infected by Covid-19 throughout Spain and the new restrictive measures that have been adopted by the administrations to try to stop them are, without a doubt, behind the loss of steam in the expected recovery of the labor market.

Social Security data is only a preview of the expected impact on employmentAccording to business sources consulted by ABC, a reality that will not be known until the end of the ERTE due to force majeure, which still affects about 800,000 and has been extended until January 31. On this last case they do not work but continue to contribute to Social Security because their employment is just suspended. Today the employment service registers almost 4 million unemployed.

Last September, a few hours after the deadline for the ERTE to cease to be in force, on September 30, the Government approved a new extension until 2021. Today, the temporary employment regulation files due to force majeure are extended for certain economic sectors, although two other figures have been launched, the ERTE of impediment of the activity and the Activity limitation ERTE, to which all companies, regardless of the sector, may apply, and which include very high exemptions, which in some cases reach 100%.

For now, the enrollment data for September reflect that the labor market continues to slow down. In September, Social Security barely gained 3,224 new affiliates, the lowest figure this month since 2013 last year of job destruction from the crisis. With this, in the last twelve months 460,739 jobs have been created, adding up to a total of 19,332,451 contributing workers. This rate of year-on-year job creation drops to 2.44% when a year ago the occupation grew at a speed close to 3%. Although, in seasonally adjusted terms, which better reflect the market trend, membership grew by 32,811 people in September.

As corresponds to a month of September the hospitality and retail sectors led job destruction with 44,346 and 34,330 contributors less than in August, while education, administrative activities and services to companies and industry gained 45,521, 21,681 and 11.88 members, respectively.

See them


Source link