Labor market and pandemic in Spain: a geography of the STWS

Abstract

Short-time work schemes (STWS) have become a fundamental instrument in Spain to tackle the labour adjustment triggered by the pandemic crisis. The aim of this study was to assess their impact on the labour market, analysing their importance according to activities and territories, aspects that have received very little attention in the existing literature. To this end, we conducted a statistical analysis of information provided by the Spanish Ministry of Inclusion, Social Security and Migration and calculated sectoral and provincial coverage rates. The results confirm that STWS have made it possible to mitigate the impact of the crisis, in contrast to what happened in the financial crisis of 2008, where the application of neoliberal austerity policies came at a high social cost. Accordingly, where a higher level of coverage has been achieved, many tourist provinces on the Mediterranean coast, as well as Madrid and Barcelona, have demonstrated “responsive” behaviour. Thus, although these provinces were the most heavily affected when the pandemic broke out, they have nevertheless achieved a rapid recovery. This contrasts with the more “vulnerable” behaviour of the industrial provinces in the north of Spain, which have been affected by a reduction in demand or problems in global production chains, and where the degree of coverage of this instrument has been lower.