AIReF warns that the official unemployment rate is less and less representative of what it wants to measure

The independent body calls for a greater effort in the analysis of hours worked

MADRID, 29 Mar. (EUROPA PRESS) -

The Independent Authority for Fiscal Responsibility (AIReF) has warned this Wednesday that the official unemployment rate is increasingly "less representative of what is wanted to be measured" because, for example, it does not include some part-time workers who want to work a greater number of hours or to the unemployed who are not registered as unemployed but who want to work, the so-called 'discouraged'.

As an example, one of the metrics points to the percentage of the "underutilized" population in Spain --which includes, among others, people with part-time work who want a full-time job or unemployed people who are not registered as unemployed but who want to work, the so-called 'discouraged'-- reaches 18%.

The independent body perceives difficulties in measuring effective employment time given the change in behavior in the labor market that has been observed since before the labor reform. For this reason, he has urged attention to alternative metrics that are already used in Europe or even the United States to analyze a changing labor market around the world.

Faced with such a volatile environment, AIReF considers that it is increasingly necessary to have high-frequency information to measure the evolution of the economic situation and the changes in behavior that are taking place, for example in the labor market.

The independent body considers "very informative", for example, the data offered in the middle of the month by the Social Security on the evolution of affiliation. According to the latest published statistics, the month of March is going to be exceptional, remember from AIReF.

However, AIReF believes that a greater effort should be made to measure hours worked, since it perceives difficulties in measuring actual employment time given the change in behavior in the labor market that has been observed since before the labor reform.

The institution also considers that new phenomena such as uncertainty should be measured and that the volume of information that includes the progress and what is reviewed in the final data should be communicated "better" within the GDP statistics, as well as the factors that exist. behind him.

The recommendations made by the independent body to the different Public Administrations to improve the efficiency and transparency of the system are frequent. In addition to the reports that are published periodically, the institution plans to soon publish an observatory of recommendations for monitoring them.

One of the reiterated points is the one related to the European funds 'Next Generation EU', that AIReF considers that it would be convenient to publish these data in terms of national accounting. The president of AIReF already criticized during her intervention in the Budget Committee the absence of information in terms of national accounting in the accounts, neither in terms of adjustment nor execution of the Recovery Plan.

The execution of the Recovery Plan --and the approval of the payments from Brussels-- is measured in terms of milestones and objectives. The reports published by the Executive detail the extent to which these milestones and objectives related to the different payments have been met. In this sense, the pace of execution is going very well, according to AIReF.

In budgetary terms, it is also possible to analyze the budget and the month-to-month execution, although the institution warns that a large part of the Recovery Plan is executed through other Administrations. Hence the need to publish these data in terms of national accounting to analyze the "full picture" on the deployment of these funds.

Despite the progress made in recent years, the president of AIReF, Cristina Herrero, pointed out in a conference organized by the Association of Economic Information Journalists (APIE) and AIReF, that it is necessary to raise the standard of transparency in the sector public.

"AIReF, after almost ten years in existence, today has more or less guaranteed access to information, after some hard beginnings in which the institution was perceived as a threat," Herrero pointed out.

However, it has warned that certain problems and areas for improvement are still detected. In fact, it has resorted on numerous occasions to the signing of Memorandums of Understanding (MoUs), although it has not been able to sign agreements with the Ministry of Economy or with the Ministry of Finance for the regular exchange of the institution, despite insistence. Nor have agreements been signed with the foral communities for the evaluations of the Minimum Vital Income (IMV).