Three methods for calculating joblessness rates
In the realm of employment statistics, understanding the differences between the Labour Force Survey (LFS), SEPE figures, and Social Security affiliation data is crucial for accurately measuring and comparing unemployment levels in Spain.
The Labour Force Survey (LFS), a quarterly survey-based measure, is the most reliable and internationally recognized method for measuring unemployment. Utilising standardized international methodology, it assesses the active population, employment, and unemployment, and is conducted by national statistics institutes, in this case, the National Institute of Statistics, in alignment with Eurostat standards to ensure international comparability. The LFS captures unemployment by directly surveying households, asking about employment status based on the ILO definition of unemployment (actively seeking and available to work).
SEPE figures, provided by the Servicio Público de Empleo Estatal, reflect the number of people registered as unemployed and actively seeking employment through the public employment service. These figures are administrative records of registered unemployment benefit claimants or job seekers at employment offices, and can be affected by policy changes or registration incentives. While SEPE figures are valuable for administrative and operational use, they are generally viewed as complementary rather than primary indicators of unemployment, as they may underestimate or overestimate unemployment due to some unemployed individuals not registering to receive benefits, or some registered people not meeting the full ILO unemployment criteria.
Social Security affiliation data tracks the number of people affiliated (contributing) to the social security system as employed workers. This data is an administrative measure of employment rather than unemployment, showing the extent of active contributors to the pension and social security schemes. While useful as a complementary indicator of labor market conditions, it does not provide a direct measure of unemployment but rather captures employment dynamics through affiliation changes.
In June, there was an increase of 76,720 Social Security affiliates, the highest in recent years, yet the total number of unemployed people stands at 2,405,963. The LFS results on unemployment and employment are extrapolated to the rest of the population, and according to the LFS, an unemployed person is someone over the age of 16 who was not working the week before the survey but was available and looking for work.
The increase in Social Security affiliates and the decrease in unemployment occurred across all sectors, communities, and age groups. The Ministry of Labour and Social Economy (SEPE) provides monthly figures for the number of registered unemployed in employment offices at the end of each month, while the Ministry of Inclusion, Social Security and Migrations provides monthly data on Social Security affiliation, including the number of people who were contributing on the last day of the month and a monthly average of affiliation.
In conclusion, for measuring and comparing unemployment levels in Spain, the LFS is the preferred and most reliable method. SEPE and Social Security data provide supplementary insights into administrative unemployment and employment trends, respectively. All three methods are essential for drawing the employment map in the country.
The average unemployment rate, as measured by the Labor Force Survey (LFS), gives a more accurate and internationally recognized depiction of unemployment levels in Spain compared to other methods like SEPE figures and Social Security affiliation data. While an increase in Social Security affiliates was observed in June, reaching the highest figure in recent years, the LFS reveals that the total number of unemployed people still stands at 2,405,963.
