Faced with the equation of more unemployment and less economic activity, the most likely result is greater competition to find a new job . The virtual struggle in job search portals has intensified since the pandemic broke out and leaves hopeless ratios: in Infojobs, the portal that moves the most offers in Spain, there are an average of 71 people for each available vacancy .
When a year ago the ratio was 41 to 1. This is one of the conclusions reflected in the report presented this Thursday jointly by Infojobs and Esade. The coronavirus has been noticeable in the supply and demand flows of the labor market, with a special impact on less-qualified workers and with an unprecedented rise in the spread of teleworking.
The data presented this Thursday confirms an unprecedented drop among the offers collected by Infojobs. Specifically, these fell 46% in 2020 compared to the previous year, going from 2.8 million offers circulating before the covid to 1.5 million since the irruption of the same. The fall has not been the same among all segments and those with the lowest educational levels are being the most affected.
To the point that the decrease in offers that do not require specialization or an average qualification have plummeted 63%. And those that do not require previous experience are also the ones that have fallen the most. That is to say, newcomers and low-skilled are the most affected are being seen.
The general director of Infojobs, Román Campa , however, has anticipated that the current hiring levels have rebounded and that currently “we are in volumes that are closer and closer to 2019.” Now this indicator needs to be translated into greater affiliations to the Social Security in the coming monthly data.
According to the latest data, Spain still has 326,000 employed persons pending to return to the levels prior to the first state of alarm. Among the current vacancies available, those seeking a commercial or sales professional are, by far, the busiest; with 311,666 vacancies registered during 2020, double that of the second most sought after.
Back to the levels of the Great Recession
Fewer vacancies for the same number of candidates are intensifying competition and have returned to the levels recorded during the Great Recession . On average, during 2020 there were 74 candidates for each job offer, almost double than the 41 registered in 2019.
The rebound in competition has pushed the statistics registered by Infojobs back seven years, since since 2013 it did not register a higher proportion of job seekers. In sectors such as retail (380 candidates per offer), business administration (182) or design and graphic arts (157) competition is where it has exploded the most. While other trades, such as health or education, where public procurement has increased, there has hardly been any variation.
Another data that the Infojobs report leaves reflects more structural and less novel problems in the Spanish labor market: the poor connection between supply and demand. Well, there are twice as many registered university students as there are vacancies available for this training. This reflects a problem of overqualification that appears repeatedly in different reports published by different houses of studies.
A trend that has been reinforced during the last year is the extension of teleworking , to the point that between January and February 2021 almost 57,000 vacancies with the option of teleworking were published in InfoJobs, which represents an eightfold increase of the 7,500 that there were in the same period a year before.
Moody’s sees Spain as one of the countries most likely to have youth unemployment due to covid
The Infojobs and Esade report also reflects an increase in the average salaries registered in the different offers on the job portal. A trend that the authors themselves acknowledge is due to a bias, while the disappearance of the worst job offers in the face of the economic downturn has caused those that offer the best conditions to remain. What results in an increase in the average salary during 2020, up to 25,173 euros on average per year; almost 5% more than in 2019.
Those responsible for the study also see a drag effect after the latest increases in the minimum interprofessional wage (SMI) , which in the last three years has gone from 735.9 euros to 950 euros.
Most companies continue to favor staying on the rising path, although this support has been slightly affected by the current crisis context. Well, if in 2021, six out of ten companies are satisfied with the increase in the minimum wage, said support was seven out of ten a year earlier; according to the study.