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City councils re-hire strongly after losing 100,000 workers

The municipalities are at the forefront of the recovery of public employment during the first semester of 2017, according to Hacienda data

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City councils re-hire strongly after losing 100,000 workers

Confronted with economic crisis, town councils were able to adjust ir accounts more easily than or administrations for two reasons: while collection of rest of tax figures went down, that of IBI rose much thanks to increments of types, elimination of bonuses, extraordinary increase that government applied and cadastre updates. In addition, local authorities provided many non-essential services. And it was much easier to cut those same services and investments. Much of employment linked to se areas was not personal staff and was refore easy to cut. In fact, with Plan E of rapid investments mobilized by Government of Zapatero increased workforce of municipalities up to 30,000 effective. But from January 2010, members began to reduce jobs. To extent that between January 2010 and January 2017, contracted personnel fell by 100,000 workers, from 580,000 to 480,000.

Even if many of m managed to redirect ir accounts, Financial Stability Act did not allow m to spend. This includes so-called spending rule, which does not allow raising of disbursements beyond what is expected to grow in medium and long term. At same time, Autonomous communities were able to adjust to a somewhat slower pace because y managed essential services such as education or health care. Mariano Rajoy's government allowed m a somewhat softer path.

However, between January and June 2017 re has been a radical change in city councils: se have gone from adjusting to hiring, leading scarce upturn in public employment experienced in semester. In just six months, 22,915 workers have been signed up. It is an increase of 5% that does not house with figures of expenditure collected in national accounting, also of Ministry of Finance. There it is collected that disbursement in staff of local entities only rises by 1.4%. and 1% should correspond to increase in salaries approved in budgets. So this strong rebound of template does not seem to be having a reflection on costs. In fact, a recent report by Independent Fiscal Responsibility Authority provides that surplus of local authorities will rise slightly to 0.6% of GDP, that is, more than 6 billion euros. Although large municipalities are skipping spending rule and reducing ir surplus, rest is more and more fulfilling.

Instead, central administration's workforce continues to decline. Since July 2010 it accumulates a fall of 82,649 employees, especially by decrees of non-replacement of seats of retired officers. Within this, state's security forces and bodies lose 9,818 members. The armed forces, 13,675 troops. And justice, 1,598. Although y have announced largest calls for public squares known in a long time, se take to materialize and number of officials who retire is very high, because average age is quite high. At moment, no recovery of employment in central State is appreciated.

More information
  • Hacienda threatens to intervene in 22 municipalities due to its high delinquency
  • Health and education recover more than half of job lost since crisis
  • Hacienda retains funds to 139 municipalities for non-accountability
  • The tax authority warns that re are 32 municipalities at risk of insolvency

In autonomous communities, workforce decreased to 74,671 people in July 2014. At that time he scored his minimum with 1,277,000 workers. Since n, this collective has gradually rebounded to recover almost a third of lost: 26,429. And right now it stands at 1,303,000. However, in last semester, according to bulletin, a certain restriction has been observed: autonomy employees fall by more than 3,000. In part, this can be explained by oscillations that occur in hiring teachers at each start of course.

In non-university education and health — two communities dependent areas — some 60,000 jobs were lost since government cutbacks in 2012. In education student-teacher ratio was adjusted and teachers were forced to stay more hours. In health, simply moved to most workload teams. Thus, it was possible to stop renewing interims and adjust templates that had continued to increase during crisis because autonomy took longer to adjust because y receive liquidation of tax resources with two years of delay: ie, They really noticed crisis two years later. According to Hacienda data, as of July 2017, education has only recovered from July 2013 about 12,000 of 33,000 missing positions, one third. Its workforce amounts to 529,000 workers. In health, from January 2015 have recovered 23,000 of 29,000 cut, two thirds. The health care now employs 499,000 people.

As for deputies, y reduced ir workforce by about 24,000 individuals to 59,000 workers. Over last two years some 2,500 employees have recovered.

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