Number of self employed increases dramatically in the Canaries

2020/08/03 10:15:40 Written by Canarian Weekly Business

In the second quarter of this year, the numbers of self-employed in the Canary Islands has skyrocketed, as the Canarian labour market collapsed as a result of confinement that was imposed to try to stop the coronavirus pandemic.

Between April and May, the main months in which Spain experienced a break in historical economic activity, a total of 138,220 self-employed workers were recorded in the islands, 1,540 more than in the first quarter, which represented an increase of 1.32%.

But it is in the year-on-year comparison that the scale of the phenomenon is reflected: in the second quarter there were 26,590 more self-employed than in the same period last year in the islands, according to the data from the Active Population Survey (EPA).

And the number of independent self-employed workers has risen too, that is, entrepreneurs without employees.
They were 100,960 in the second quarter, 5,450 more than in the first, which implies a growth of 14.4%; and there are 27,970 more than a year ago, that is, 81% more in year-on-year terms.

On the other hand, the closure of activities that were not essential during the state of alarm, caused the fall of the group of self-employed with employees in their charge.
The figure remained in the second quarter at 35,160, which is 4,620 less than between January and March (-30.7%); and 880 less than a year ago (-13.14%).

These figures respond to two trends that are manifested in turbulent economic periods, such as those that this autonomous community suffers, especially where tourism generates 35% of its wealth, on the one hand, there are companies that can choose to change the modality of labour relations, and resort to self-employed to provide certain services.

The second reason for the explosion of self-employment, is the absence of expectations to find a traditional job as a worker for someone else, so many unemployed people have decided to undertake it on their own, especially as there are subsidies and social security reductions for anyone who becomes self-employed for the first time.

According to the EPA people stopped looking for a job in the Canary Islands in the second quarter, and experts believe that some of these lost assets have become autonomous. Between April and June, 108,000 jobs (-11.62%) were destroyed on the islands.