In February jobs figures were the best they have been since 2007, and Social Security filings have not been as high since 2008. Even though the government did not become complacent after executing massive reforms, jobs numbers after the vacation season (227,736 fewer unemployed workers year-to-year) and Social Security filings (62,383 more filings) show that for the first time since the crisis began we are starting to see an increase in jobs.
The trend will continue to influence the Spanish economy for several months. Sprint is the best time for the national labor market because seasonal hiring will boost the labor force in tourism and agriculture. Even the construction is expected to see an early spring hiring spree starting in late February, although its year-to-year hiring data will still be negative and that trend might take a long time to reverse itself. Higher service industry jobs show that regions focused on tourism are healing fastest. The good February jobs numbers need some qualification: most of the new jobs are temporary and part-time contracts. And more women are finding new jobs more than men.
Now is not the time to celebrate, but to take more measures that feed job creation as we enter the summer hiring season. A flat Social Security tax is good, but not enough to nix redundancy in the labor market. Generalized and lasting Social Security tax cuts are necessary. We also need to see single contract styles and leverage recent improvements in the labor market to deepen labor reforms.