CEOE and Cepyme see symptoms of "certain slowdown" in the fall in unemployment and ask for caution

They admit "concern" about the effects of inflation and uncertainty, since "they can contract the hiring"

MADRID, 4 Jul. (EUROPA PRESS) -

The Spanish Confederation of Business Organizations (CEOE) and the Spanish Confederation of Small and Medium Enterprises (Cepyme) have warned this Monday that symptoms of a certain slowdown in the fall in unemployment are observed and have urged "extreme caution".

In a context of enormous uncertainty on an international scale, increased by the war in Ukraine, the CEOE employers' association has assessed that June ends with 115,607 more contributors and 42,409 less unemployed, a usual behavior of employment in the summer period, which translates into improvements generalized by territories, sectors of activity and sex.

However, the CEOE has warned that compared to the pre-pandemic series, there are signs of a certain slowdown in the fall in unemployment, which forces us to be extremely cautious, even more so in a context of downward revision of expectations for economic growth that also coincides with the expiration of obligations contracted during the pandemic (return of ICO credits).

"The especially complex international scenario derived from the war in Ukraine, the runaway CPI and the scarcity of some raw materials cannot be ignored either," the employers recalled in a statement.

Despite everything, the CEOE has assessed that the figures released this Monday highlight "the will and commitment" of companies to promote the normalization of economic activity and employment.

However, they have warned that there are still high unemployment figures, with a marked structural nature, which is why they have asked to strengthen the effectiveness of active employment policies and, in particular, permanent training.

Likewise, the employers believe that it will be necessary to follow the evolution of employment in the coming months and maintain it as a priority, since inflation and uncertainty "can contract hiring", which is why it is essential to avoid second-round inflationary effects, generate a a climate of trust that promotes investment and hits the right measures to support companies and workers.

On its side, Cepyme has warned through a statement that the Spanish economy is far from recovering the GDP rate prior to the pandemic. Thus, employers view with concern the difference between the evolution of the economy and that of the labor market, which deepens the loss of productivity more and more.

In addition, the Confederation is also concerned about the effects of inflation and warns that Spanish SMEs will not be able to maintain the cost pressure they are currently suffering in the medium term without their own viability and job creation being affected, despite of the recent extension of the package of measures to deal with the effects of the crisis.