Activity, Unemployment, and Economic Sectors in Spain
The economic structure of the population includes the study of the active population, those who contribute to the productive process, and the different economic sectors in which they are employed. The activity rate, which is the percentage of active individuals in a population, varies by sex, age, and region. The activity rate of women is generally lower than that of men, although it has been increasing over the past 20 years. In 2008, the overall activity rate was around 60%, with 69% for men and 50% for women.
Activity rates are higher in areas with greater economic dynamism, such as the Mediterranean coast and the two archipelagos (due to tourism and construction), the Basque Country and Barcelona (due to industry), and Madrid (due to the tertiary sector). Regarding the active population across economic sectors, there has been a decline in the percentage employed in farming and industry, and a progressive increase in services. Agriculture is more prominent in inland communities and some Mediterranean regions, industry in the Basque Country, Navarre, and Rioja, and the service sector is the most prominent in all regions, especially in more urban areas and those heavily reliant on tourism.
Another recent phenomenon is the rise of precarious employment, often referred to as “garbage contracts,” which involve the use of learning contracts and employment practices to replace stable positions. This leads to job insecurity. In the Canary Islands, the activity rate is slightly higher than the national average (61% in 2008), primarily due to the demographic structure, the greater incorporation of women into the workforce, the greater diversity of jobs in the tertiary sector, and positive net migration.
Unemployment Rate Trends in Spain
Until 1973, Spain did not have a significant unemployment problem, with rates not exceeding 3%. Between 1973 and 1985, the unemployment rate experienced a large increase due to the economic crisis, the incorporation of women into the labor force, and the demand from an increasingly numerous young population. Subsequently, it decreased before rising again with the crisis of the early 1990s. Then, it suffered a strong and prolonged drop to around 10% from the mid-1990s to 2007, when the crisis began to affect all economies.
Currently, the unemployment rate in Spain is around 20% of the working population, which is among the highest in the EU. The global economic crisis has had a particularly strong impact in Spain, as reflected in this indicator. The crisis initially affected workers in the construction and housing sectors but has since extended to all sectors. It disproportionately affects women and young people. Regionally, southern communities are more affected than northern ones, with the Canary Islands, Andalusia, Ceuta, and Valencia having higher unemployment rates, while Navarre, the Basque Country, and Cantabria have lower rates.
To address this situation, various public administrations are undertaking initiatives such as public works projects and employment subsidies. In the Canary Islands, the unemployment rate has increased significantly, from 126,000 unemployed in January 2007 to 258,000 in January 2010 (27% of the active population), well above the national average and the highest among the autonomous communities. The collapse of the construction and tourism sectors has led to an increase in this indicator to levels that are causing social concern.