The latest Active Population Survey (EPA) released this Friday brings promising news for certain regions in terms of employment. One standout region is Asturias, where employment has seen the most significant growth in both the last quarter and the last year. There has been a 5.3% increase in the number of workers in Asturias compared to the previous quarter, while the national average increase stands at 0.6% for the same period. This data, considering the relatively small population of the Principality (just over a million inhabitants), would warrant caution if it weren’t for the annual evolution: the number of employed individuals in Asturias has grown by 6.6% in the last year, compared to the national average of 1.8%.
Another noteworthy increase in annual employment is seen in Cantabria (3.9%). Additionally, the progress in the labor market on an annual basis stands out in Andalucía (3.3%), Navarra (3.26%), and the Community of Madrid (3%). Conversely, there is a decrease in employment in the Valencian Community (-1.1%), the Basque Country, and La Rioja (both at -2.3%) compared to twelve months ago. Looking at the quarterly analysis in percentage terms, the regions with the best performance are the aforementioned Asturias, the Balearic Islands (+5%), and once again Cantabria (4.3%). The quarter has seen a decline in the Basque Country (-4.1% of workers), the Valencian Community (-1.8%), and La Rioja (-1.2%).
In terms of the number of workers, without considering the population of the region, Catalonia is the autonomous community that generates the most employment in the third quarter, with 53,500 new jobs, followed by Castilla y León (32,000) and the Balearic Islands (31,300). Conversely, job losses are seen in the Community of Madrid (12,700), the Basque Country (41,800), and the Valencian Community (42,300). This dynamic is closely linked to both the population size of these regions and seasonality.
These movements slightly alter the unemployment rates in each autonomous community. The best data is found in the Balearic Islands (6.2%), Cantabria (7.2%), and the Basque Country (7.6%), although the trends in each region vary significantly. The island community has managed to reduce its unemployment rate by almost five points compared to the previous year, while the Basque Country has the highest year-on-year increase (+1.23%). The highest unemployment rates are in Andalucía (16.1%), the Canary Islands (14.4%), and Extremadura (13.8%). The good news for these three regions is that unemployment has decreased by two points compared to the previous year.
However, at times, the regional analysis may be limited, as there are significant differences between some provinces within the same region. The provinces with the lowest unemployment rates in Spain are not necessarily the ones with the most robust economic development. Instead, they are often sparsely populated with a large portion of inactive population, leading to a lower unemployment rate. Provinces with the lowest unemployment rates in Spain include Segovia (5.6%), Teruel (5.7%), Soria (5.8%), and the industrialized Gipuzkoa (5.9%). On the other hand, the highest unemployment rates are reported in Cádiz (18.1%), Jaén (21.9%), Granada (22.1%), and the autonomous cities of Melilla (27.1%) and Ceuta (29.3%).
Overall, the latest EPA data paints a varied picture of the employment landscape across different regions in Spain, showcasing both areas of growth and areas of concern. As the economy continues to navigate the effects of the global pandemic, monitoring these trends at a regional level provides valuable insights into the evolving labor market dynamics.