What Recovery? Spanish Wages Tumble To Weakest Since 2007

Tyler Durden's picture

Amid all the singing and dancing over Spain's miraculous recovery and Europe's renaissance on the back of Draghi's money-printing machine, it appears - just like in America - that below the glossy veneer of engineered equity and bond prices, all is not well. As Xinhua reports, the average wage in Spain has fallen to its lowest level since 2007, according to figures released by the Spanish Ministry of Finance, and after peaking at 19.3 million in 2009, the number of workers is also collapsing.

According to data which is based on the tax returns of nearly 16,900,000 workers in Spain in 2014, the average annual wage now stands at 18,420 euros (around 20,000 US dollars).

The highest salaries are found in the capital city of Madrid, where the average worker takes home 24,576 euros. The lowest salaries are recorded in the rural region of Extremadura, where people's annual income is as low as 13,559 euros.

The report shows that salaries showed little fluctuations from 2008 to 2011, and began to fall after the implementation of labor reform in 2012.

 

The ministry says the fall was not so much due to salaries being lowered for people at work, but that newly created jobs now offer much lower pay than before the crisis.

However, the crisis has no effect on Spain's biggest earners as those who earn 10 times the minimum wage saw their salaries continue to grow. The 127,706 people fell in this category earn an average of 148,824 euros in 2014.

There is also clear gender discrimination in earnings in the highly-paid sector. Women account for just 18 percent of those earning 10 times the minimum wage.

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So yet another 'recovery' based on the lowering of job quality and collapse in participation rates... as long as the mainstream media plays along with the headlines (and The ECB keeps buying) everything is awesome.

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It appears the Catalans may have been right to want out...

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LawsofPhysics's picture

in playing a rigged game, yes, you are correct.  Black markets are doing quite well.

moonmac's picture

USA’s on its way to Spain’s 50% youth unemployment rate which will only guarantee American kids never work a hard day of labor in their entire lives and will never see how actual businesses are run just like all Fed members. Public School Socialism is turning their feeble minds to mush! Generations of spoiled little brat wussies who haven’t done shit for this country but feel they’re entitled to free food, healthcare and college.

venturen's picture

they are further down the socialists crony-kleptocracy....and we are better at lying about the numbers...so we have that going for us

LawsofPhysics's picture

The children of the oligarchs disagree.  I mean, because they have done so much...

As far as I can tell, that "I'm entitled" bullshit is far worse at the top.

Fuck em ALL.  If you don't work, you don't eat.  Now fuck you, pay me, with something real motherfucker.

tarabel's picture

 

 

Okay, I'll take your car and give you six weeks of sensitivity training in trade.

Riding the bus and being submissive to the freaks around you is as real as it gets.

LawsofPhysics's picture

LOL!  You won't take shit.

Soon enough, most producers won't be accepting any fiat either.  This time, it's global Weimar.

I am sure the "elite" taste like chicken, no worries mate.

HenryHall's picture

Meanwhile the Portugal president stalls making a decision on accepting the elected parliament coalition with ever more never-ending requests for more and better paperwork from the elected political parties. Paperwork that he says is "required" to make a decision.

Phillyguy's picture

Greece can be considered the poster child for what is in store for people living in the other Greece’s in the EU- Spain, Portugal, Italy and France. All of these countries are confronted with stagnant/declining economies, a sclerotic manufacturing base, increasing unemployment coupled with anemic job growth, increasing austerity, poverty and deficits. These structural economic problems will likely lead to increasing social instability in these countries, threatening the viability of the Euro project. 

Wile-E-Coyote's picture

This is just not Spain, it is across Europe maybe with the exception of Germany.