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Spain - Andalucía

Short overview of the labour market


Andalusia is located in the south of the Iberian Peninsula, in the southernmost part of the European continent. To the north it borders with the Autonomous Communities of Extremadura and Castile-La Mancha; to the east with Murcia; to the south with the Mediterranean Sea, the Strait of Gibraltar and the Atlantic Ocean; and to the west with Portugal. It is the second largest Autonomous Community in Spain (87 597 km2) and the first in terms of population. It consists of eight provinces (Almeria, Cadiz, Cordoba, Granada, Huelva, Jaen, Malaga and Seville) with 8 409 657 inhabitants as of 1 January 2017 (provisional results from the National Statistical Institute [Spanish acronym INE]) and has a population density of 96 inhabitants / km2. The most populous provinces are Seville, Malaga and Cadiz. A total of 631 713 foreigners reside in Andalusia accounting for 7.51 % of the population. Over the last year the population in Andalusia grew by 0.07 % while the foreign population fell by 0.29 %.

According to Labour Force Survey (LFS) data from Q3 2017, there are 3 957 900 economically active people over age 16 in Andalusia, 74.59 % of whom are employed and 25.41 % unemployed. The inactive population totals 2 944 400.

In 2017 the labour market continued to perform well based both on data from the Labour Force Survey (LFS) and the public registers of the Ministry of Employment and Social Security. The number of people on the rolls of the social security system has risen as has the number of engagements; moreover, the number of unemployed has decreased. With respect to Q3 2016, the unemployment rate fell by 3.11 percentage points while the employment rate rose 1.57 points, exhibiting the largest increase in employment (111 200 more people employed) in Spain as a whole. Despite better labour market figures this past year, Andalusia remains the Autonomous Community with the highest unemployment rate in Spain (only surpassed by the Autonomous City of Melilla) at 25.41 % compared to the national rate of 16.38 %, and has the third lowest employment rate. The provinces of Cordoba, Almeria and Cadiz have the highest unemployment rates while Malaga and Seville have the lowest, this latter city having the highest employment rate.

The region’s business fabric comprises mainly small and medium-sized enterprises. According to data from INE’s Central Directory of Companies (Spanish acronym DIRCE), as of 1 January 2017 there were 501 745 companies, over half of which had no employees; 229 643 had employees and 91.67 % of these were micro-enterprises with fewer than 10 workers; and only 493 companies had over 200 workers. The largest number of companies work in the following activities: Trade, Food and beverage services, Construction of buildings and Land transport and transport via pipelines.

The Autonomous Community of Andalusia accounts for approximately 13.3 % of national GDP. According to Economic Analysts of Andalusia, GDP is expected to rise by 3.0 % in 2017 owing to better performance in the industrial and agricultural sectors and higher external demand. This growth could be in the vicinity of 3.3 % in Malaga and Granada, 3.2 % in Cadiz and Almeria and 3.0 % in Seville, growth being below the regional average in the rest of the provinces.

Text last edited on: 03/2018

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