Labor activity in Spain

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One of the most economically relevant data is that which refers to work activity. Insofar as it can influence the future of companies listed on equity markets. Not with great intensity, but at least so that you have one more parameter to make your decisions inversión de ahora en más. Fundamentalmente en sectores como grupos financieros, bancos y aquellos con mayor relación con los intereses del Estado. No es sorprendente que, basándose en los datos sobre desempleo, los gobiernos seleccionen una u otra strategy en su política económica. Aquí es donde estos datos de desempleo son más importantes.

From this source of analysis, financial markets do not tend to support high unemployment figures. Quite the contrary, they can be the basis for sustaining a rise in stock indices. On the other hand, it must not be forgotten that the decrease in the workforce in listed companies is usually welcomed by wide climbs in stock prices. This is an absolutely generalized action in all of them since, above all, they want to continue growing in their commercial accounts. Unfortunately, the human factor does not count as the financial markets do not understand sentiment.

A pesar de todo, además en otras situaciones, los mercados de valores celebran las cifras de desempleo con nuevo vigor. Fundamentalmente cuando hay cambios significativos. Especialmente por su impacto en la sociedad y la economía en general. Por una razón muy claro y eso es por tener más persons en la actividad laboral al final affects consumption. Y este factor siempre es bien recibido por los mercados financieros. Ya be en la Bolsa de Valores Nacional o fuera de nuestras fronteras. En este aspecto, uno de los datos más esperados por los inversores proviene de Estados Unidos y es el que se refiere a las solicitudes semanales de desempleo. Hasta el punto de que su influencia en el mercado de valores es muy importante.

Employment improvement in 2017

The latest data provided by the Labor Force Survey (EPA) carried out by the National Institute of Statistics (INE) highlights the job recovery in Spain over the past year. When checking in its report that the number of employed increased by 235,900 people in the third quarter of 2017 and stood at 19,049,200, the highest figure since the third quarter of 2009. The quarterly variation rate of employment is 1.25% . The employment rate (percentage of employed with respect to the population aged 16 and over) stands at 49,27%, which represents an increase of 57 hundredths compared to the previous quarter. In annual variation, this rate has increased 1.2 points.

By sex, employment increased this quarter by 163,600 for men and 72,300 for women. By nationality, employment grew by 196,600 among Spaniards and by 39,300 among foreigners. By age, the largest increases in employment in this quarter have been observed in people aged 20 to 24 years (101,000), in the group aged 55 and over (39,800) and in those aged 16 to 19 (36,900). On the other hand, in the 30 to 34 age group, the number of employed persons decreased by 12,400. In the last 12 months, employment has increased by 521,700 people (307,700 men and 213,900 women). The rate of annual variation occupancy is 2,82%, which represents an increase of two hundredths compared to the previous quarter.

The service sector at the forefront

The Labor Force Survey also highlights that last year it was the service sector that gave the most jobs in all the autonomous communities. It is clear that the number of employed persons increases this quarter in the services (236,400 more), in Industry (34,100) and in Construction (21,000) and decreased in Agriculture (55,500 less). In the last year, employment has increased in all sectors: in Services there are 301,700 more employed, in Industry 139,400, in Construction 47,400 and in Agriculture 33,200.

As for full-time employment, it increased by 380,200 people, according to the EPA report, while the number of part-time employees decreased by 144,300. The percentage of employed persons who work part-time drops 95 hundredths, up to 14,31%. In the last 12 months, full-time employment has increased by 493,000 people and part-time employment by 28,700.

More number of workers

The number of wage earners grew this quarter by 216,400. Those with an indefinite contract increased by 67,500 and those with a temporary contract by 148,900. The temporary employment rate rises 57 hundredths, to 27.38%. In the last 12 months the number of workers has increased by 502,000. Permanent employment has increased by 299,300 people and temporary employment by 202,700. The total of self-employed grew by 21,000 people in quarterly variation. Private employment increased this quarter by 177,600 people, standing at 15,987,200. Public employment does it at 58,300, up to 3,062,100.

By sex, the number of unemployed men is reduced by 90,700 this quarter, standing at 1,810,700. Among women, unemployment falls by 91,900, to 1,921,100. The female unemployment rate fell 84 hundredths and stood at 18,21%, while the male unemployment rate fell 83 hundredths and stood at 14,80%. By age, the decline in unemployment this quarter is concentrated in the 25-54 age bracket (159,800 fewer unemployed persons). For its part, the number of unemployed increased by 9,200 among people between 16 and 19 years old. By nationality, unemployment fell by 160,900 people among Spaniards and by 21,700 among foreigners. The unemployment rate of the Spanish population is 15,52%, while that of the foreign population is 22,70%.

Incidence of unemployment in the stock market

As we mentioned previously, the link between unemployment and equity markets is not very direct. But on the contrary, it appears because of the repercussions it has on other aspects of the economy in general. One of them stems from the impact it can have on economic growth. This is information that publicly traded companies are more prone to. Since generally low unemployment rates correspond to periods expansive economy. Where the rises in the markets is the common denominator in most indices.

On the other hand, it is also reflected in the role that the inflation. The consumer price index is a variable on which all the world's stock exchanges are pending. To the point that it is decisive that they go up or down and from this dynamic you are in a better position to make profitable savings under greater efficiency. The reaction is immediate to every piece of information that comes out on the financial markets. Not surprisingly, you should always be very attentive if your desire is to open positions in equities. Above other economic data of special importance.

Linking unemployment to households

Referring again to the Labor Force Survey carried out by the National Institute of Statistics, it provides another interesting piece of information compared to last year. It is none other than the number of households increases by 10,100 this quarter and amounts to 18,515,300. Of these, 4,729,200 are sole proprietorships. Households that have all their active members unemployed decreased this quarter by 83,700, to a total of 1,193,900. Of these, 309,300 are sole proprietorships.

For its part, the number of households in which all its active members work increased by 134,100, to 10,235,300. Of these, 1,900,500 are sole proprietorships. In annual comparison, the number of households with at least one asset in which all the assets are unemployed has decreased by 244,400, while those with all their working assets has grown by 412,300. In annual variation, the largest increases in occupancy were observed in Andalusia (111,200 more), Comunidad de Madrid (109,400) and Catalonia (92,700). On the other hand, the greatest decrease in the number of employed persons occurred in Castilla y León (6,100 less).

Direct link with the stock market

Another aspect that you have to take into account from now on is that there is no company that collects this derived data on the level of employment in their quotes. In this aspect, it can be said that it is not an asset that is traded like other economic parameters. As an example, the arrival of visitors, the increase in the cost of living or the levels of indebtedness of a country. To the point that there may be upward movements in equities in periods of high unemployment. It is not surprising that very few financial agents consider this variable for make your decisions, one way or another. If not, on the contrary, what is seen in financial markets as neutral data. If it hardly has an impact on the quotes.

There is no direct link in which higher unemployment generates more vertical rises in equities. But in any case, it is a parameter that helps improve companies' profit margins. Even when under a very little appreciable intensity and that is hardly reflected in the value of the prices. Even though it is always good that you take it into account to operate in the equity markets.