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Diario PYME

Granada's active population falls as unemployment drops: the other side of the coin

The province registers fewer people working or seeking employment, a worsening trend that contrasts with the rise in pensioners.

Spanish flag waving with blurred Andalusian architecture in the background.
IA

Spanish flag waving with blurred Andalusian architecture in the background.

The province of Granada starts the year with 444,400 active individuals, a figure marking a decrease from previous years and approaching pandemic levels, while the pensioner population reaches historic highs.

The province of Granada has begun the year with an unemployment rate of 15.05%, the lowest since 2008. However, this improvement in unemployment figures conceals a worrying reality: a continuous decline in the active population, meaning those over 16 years old who are actively working or seeking employment.
According to data from the Active Population Survey (EPA), the province had 444,400 active individuals at the start of the year, representing a drop of 2,000 people compared to the same period last year and a figure close to the 443,600 recorded in mid-2021. This trend contrasts with the peaks in active population reached in 2023, which exceeded 472,500 people.
María Vera, general secretary of the Granadina Confederation of Employers (CGE), has warned about this 'other side' of labor statistics. The decrease in the active population, which includes both employed and unemployed individuals, directly influences the unemployment rate, as a smaller base of active workers can lead to an artificially low unemployment rate.
While the active population is declining, the number of unemployed people has also seen a significant reduction, standing at 66,900 individuals, the lowest figure of the decade. However, the number of employed people has increased to 377,500, indicating that the drop in the active population is not due to a lack of jobs, but rather to lower participation in the labor market.
Concurrently, the inactive population, those who are neither working nor seeking employment, has grown notably, especially among retirees and pensioners, reaching 187,400 people. This increase, combined with falling birth rates and rising life expectancy, is emerging as one of the main challenges for the labor market.
This trend of declining active population is also observed in other Andalusian provinces such as Cádiz and Jaén, albeit with nuances. In Cádiz, the active population has also decreased compared to 2023, and unlike Granada, the number of employed individuals has also fallen. Jaén, on the other hand, has recorded the lowest unemployment rate in Andalusia, but its active population is below historic highs, although employed individuals have reached their highest figure in the decade.

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