Introduction: Delving into the intricacies of the Spanish manufacturing landscape, a nuanced employment scenario emerges. The latest data from the VESGEP (Sales, Employment, and Salaries in Large and Small Businesses) statistical report by the Tax Agency reveals a 1.6% growth in the number of employees in the manufacturing industry from January to September 2023. Covering 99% of companies obligated to electronically file their taxes, this report offers insights into the employment dynamics.
Employment Growth Dynamics: The surge in the workforce within the manufacturing sector witnessed a notable upswing during the first quarter of the year. However, this growth trajectory gradually decelerated in the subsequent two quarters. Examining specific sectors, noteworthy increments in new hires were recorded in industries holding substantial weight in manufacturing: food, beverages, and tobacco, machinery, and chemicals and pharmaceuticals. Conversely, sectors such as transportation equipment and paper and graphic arts experienced growth in the number of employees during this period, breaking the downward trend initiated by the pandemic but not fully recovering to pre-pandemic levels. On the flip side, textile and apparel companies, as well as those in wood and cork, continued to shed jobs, affirming the downward trend they’ve been experiencing since 2019.
Remuneration Trends: Analyzing remuneration, the average salary in the manufacturing sector, adjusted for inflation, grew by 4.9% from January to September. While this figure represents an aggregate for the sector and doesn’t delve into salary increases based on position, company productivity, or hours worked, it serves as a swift indicator of the overall trend. Like employment growth, the pace of salary increase experienced a certain deceleration as the year progressed.
Manufacturing Employment vs. Macroeconomic Indicators: One notable observation is that employment trends in manufacturing are outperforming other macroeconomic variables in the sector. Company revenues reported to the Tax Agency saw a mere 0.1% growth in the first three quarters of 2023 compared to the same period in 2022. Additionally, exports recorded a decline of 0.6% until September, following a 5.4% growth in the first three quarters of 2022 compared to 2021. It’s crucial to note that these aggregated figures are impacted by the coke and petroleum refining sector. Excluding this sector, revenue growth reaches 1%, and exports show an increase of 1.6%.
Sector-Specific Challenges and Opportunities: The employment scenario in manufacturing reflects a dynamic landscape with sector-specific challenges and opportunities. Industries like food and machinery demonstrate resilience, driving employment growth, while others face persistent challenges, evident in the continued job losses in textiles and wood-related enterprises. As Spain navigates the post-pandemic economic terrain, the manufacturing sector remains a key player, contributing significantly to employment and economic indicators.
Conclusion: In conclusion, the VESGEP report provides a comprehensive snapshot of the employment dynamics in Spanish manufacturing industries. Despite the challenges posed by the pandemic and sector-specific struggles, the sector displays notable resilience, with employment growth outpacing other macroeconomic indicators. Navigating the intricacies of employment trends and remuneration patterns offers valuable insights for stakeholders, policymakers, and industry players as they strategize for the evolving economic landscape.