38% of people from Tarragona do not even reach mileuristas

38% of workers from Tarragona earn less than a thousand euros each month. Their salaries are anchored to the interprofessional minimum wage (SMI) or they have a part-time contract and cannot work enough hours to have a payroll that reaches four digits at the end of the month.

The truth is almost 138,000 employees Tarragona's total 360,000 employees remain below that threshold, which places them in a delicate position when it comes to cope with inflation and all its derived uncertainties. This is confirmed by the latest statistics published by the Tax Agency, relating to 2021, which allow calibrating in which state the salaries arrived at the current price crisis.

There are more and more people in the lowest salary bracket. In 2021, with a minimum salary of 965 euros, 38% of employed people from Tarragona declared that profit or less. A decade earlier, in 2010, and with an SMI of 633 euros, the proportion was significantly lower and stood at 31.2%.

They have the highest salaries

The analysis of these recently published data in a provincial code yields two more conclusions. The wage gap between men and women has widened in the course of the pandemic and the average salary grew last year, in response to extremely high inflation that will also continue in 2022. Men earned an average of 5,221 euros more than women at the end of the year in 2021, due to the 5,095-euro gap that existed in 2020. In the highest income bracket, the one that goes beyond 10 times the SMI, 87.5% of wage earners are men.

Some 138,000 employees received an average income in 2021 that did not reach one thousand euros

At the other end, women account for 54% of the lowest salary scalethe one that remains half of the SMI in terms of income. The average salary in Tarragona stood at 21,387 euros, signing an increase of 5% compared to 2020 (20,352). It is true that this is one of the most noticeable increases in recent years, a consequence of the revisions to fight against a runaway CPIalthough it must also be taken into account that it came from the impact on salaries that the pandemic caused in 2020.

Age is another very obvious differential factor. Young workers (those under 35 years of age) have a lower average wage while those over 35 earn, in general, above the provincial average.

The data also shows the loss of purchasing power. That 5% general increase in 2021 did not reach the 7% growth in inflation with which 2021 ended, prior to an escalation that this year has been much larger and has shot up to 11% in a few months.

87% of the highest salaries are for men

Another statistic allows us to see where the shots are going in this 2022. Salaries, although only those that are under an agreement, grew by 1.78% in Tarragona until October, according to the Ministry of Labor.

Less purchasing power

In that same month, inflation stood at 7.1%, four times more, according to the INE, and that CPI has managed to reduce slightly since the summer. Antoni Cunyat, associate professor of Economics and Business studies at the UOC, explains that "although there was an increase in 2021 we came from a great crisis in 2020, a forced moderation of wagesso last year's increase is not symptomatic." As much as salaries rise, Cunyat maintains that there is a loss of purchasing power, which has dragged on for years, beyond the pandemic. “We have to differentiate between the nominal salary, which is what you earn, and the real one, the ability to purchase goods and services. During the last years there has been a reduction in the real wages of workers, a deterioration”, indicates Cunyat. Among the factors that cause it, he points out “the bargaining power of companies, the collective bargaining system, unemployment rates or the serious problem we have as a country in terms of stagnant productivity. All these factors cause purchasing power to be lost."

"In recent years there has been a deterioration in wages and purchasing power," says Antoni Cunyat, professor of Economics at the UOC

Also included in the equation are latest rises of the SMI. “It is something that benefits a certain sector of less-skilled workers, although there is no clear consensus on the general effects. There may be a job destruction effect due to the costs that the company must bear, but there is no consensus”, says Cunyat.

growing inequality

For this expert, the solution is not to match wages to the CPI. «If salaries grow at the same level as inflation, we could start the dreaded price spiralBecause labor costs increase. The ideal is the famous rent agreementwhose philosophy is to distribute that cost among all social agents. That is to say, wages are raised less but companies also sacrifice a part of their profits », he indicates.

The balance sheet of the Tax Agency shows how the inequality between classes. The salaries of six out of ten Spaniards increased by less than 1%, while among the richest wage increases were around 2%. «One of the effects of inflation is that it does not affect all groups equallybut to those who have a lower income level. That is why we are witnessing an imbalance and we will see greater inequality”, concludes the UOC professor.

The average retirement is 417 euros more than the salary of a young person

The average pension of retirees in Tarragona is 417 euros higher to what young people earn for their work. The average pay of the group of pensioners reached 1,212 euros in October in the province, according to the latest data available from Social Security. On the other hand, the statistics of the Tax Agency show that young people up to 35 years of age entered Tarragona an average of 9,543 euros per year, which divided by 12 payments makes a total of 795 euros per month. It is a figure that is not even close to the interprofessional minimum wage and that is far from the average pension.

Although retirees may also lose purchasing power due to inflation, as happened in the previous crisis, the pension can be erected as a lifeline for families in the face of precariousness in the labor market, which especially affects the youngest.

The Government expects pensions to rise by around 8.5% in 2023.

Workers in financial institutions and insurance companies are the ones who earn the most

The employees of financial institutions and insurance companies are the ones who earn the most in Tarragona. The average salary in this field rises to 39,687 eurospractically double the average (21,387), according to the 2021 balance of the Tax Agency.

The second position, already at a certain distance, is for the industry (29,106), which is slightly ahead of the area of ​​information and communications and the so-called extractive industry, a field that also includes activities in such strategic products as energy and water.

Of course, salaries in banking and insurance have fallen in recent years, a time marked by the very intense -and still inconclusive- restructuring of the financial market and the closure of branches. In 2019 they stood at 39,742 euros. In 2021 there were 5,600 employees in that sector and in 2015 there were 6,328.

Meanwhile, remunerations in industrial fields have been growing gradually.

The primary sector, at the tail

At the other extreme, as worst-off sectors, appear personal and leisure services, with an average salary of 10,051 euros per year, only behind other low-paid activities, agriculture, livestock, forestry and fishing.

Those who work in these positions linked to the primary sector receive an average of 12,463 euros per year, a quarter of what those privileged in the highest salary stratum earn. Of course, farmers and ranchers have experienced a certain increase in relation to 2019, before the pandemic. Then the average data was 11,772 euros.

Leave a Reply

Your email address will not be published. Required fields are marked *

Go up