The Government opens to raise the minimum wage from September and maintains the growth forecast

The Minister Spokesperson, Isabel rodriguez, the First Vice President, Nadia Calvin and the Minister of Finance, Maria Jesus Montero, appear in Moncloa after the Council of Ministers and in the session, the First Vice President has announced a “possible” increase in the minimum wage from September.

However, he stressed that the increase in the minimum wage will depend on how the labor market evolves in the coming weeks. “In light of how the labor market evolves in the coming weeks, we will see in September if it is possible to recover the path of rise in the SMI and agree to a hike in the last months of the year that will allow us to continue advancing to the 60% target of the average salary, “he said at the press conference after the Council of Ministers.

Calviño has also pointed out that a recovery of more than 90% of the job lost is expected for this month of July as a consequence of the ‘shock’ caused by the pandemic last year, and which in the fall are expected to reach employment levels of February 2020.

The first vice president has indicated that about a year and a half later since the irruption of the coronavirus, “a solid economic recovery” is underway. In fact, the positive evolution of the labor market “is the best indicator of this recovery.”

He has also added that after reaching the maximum of one million people in ERTE, the workers benefiting from this mechanism have been declining steadily to stand at around 340,000, of which a third are in ERTE part-time.

Employment forecasts are maintained

For their part, the self-employed covered by the activity cessation stood at 160,000 people in June, the lowest level in nine months.

Likewise, the minister has pointed out that the growth and employment forecasts established in the previous macroeconomic table are maintained. In fact, it foresees an unemployment rate for this year of 15,2% and from 14,1% for the next one.

In economic matters, Calviño has also ratified his growth forecast for the Spanish economy of the 6.5% this year and 7% for the next fiscal year as estimated last April thanks to the reactivation that is taking place with the advance of vaccination, estimating that in 2020 the GDP will be reached preCovid and in 2023 the prepandemic expansion rate will recover.

The new macroeconomic picture maintains the forecast that private consumption will grow by 7.3% this year and 6.9% the next, and the expansions of 2.5 and 1.5% estimated in April for public consumption. It improves the contribution of exports, raising its projection for this year from 9.2 to 10%, and maintains 10.35 for imports.

Calviño emphasized the employment evolution, where although it confirms that this year it will fall from 15.5 to 15.25 and will fall to 14.1% in 2020, it is far from the 20% that organizations such as the Bank of Spain or the OECD predicted that could be achieved if there were new waves of Covid.

Public job offer

The 2021 call, which involves raising the 28,055 places called last year by 8.5%, will be especially intensive in areas related to the science, technology, engineering and mathematics.

The Second Vice President of the Government and Minister of Labor, Yolanda Díaz, has defended that this offer implies continuing to recover and restore the public “in front of the cuts of the PP” and has underlined the role played by public employees in this pandemic.

On the other hand, the Government will also give the green light to non-financial spending limit for 2022, step prior to the preparation of the General State Budgets for next year.

The incorporation of the financing of the Recovery Plan, which conveys European funds, will once again mark the spending ceiling, which in 2021 reached a record figure of 194,456 million euros, below the maximum limit of 196,067 million approved.

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