The two faces of the labor market

The “double face” of the labor market in the first four months of the year is compounded by the explosive rise in recruitment, but also the worrying rise in layoffs. Nevertheless, unemployment fell again in March to 12.2% – from 16.8% in March 2021 – while high recruitment rates led to a positive result in the employment flows of the first four months of the year.

However, it is clear that the labor market has not yet reached equilibrium, and this is evidenced by the huge shortage of staff in the tourism sector, while unemployment remains high. It is noteworthy that tourism operators note that this season started with more than 55,000 vacancies.

The problem is – somewhat – increased compared to 2021, as a recent survey by the INSETE Institute shows that at the peak of last season, 53,249 positions remained vacant out of a total of 244,124 jobs in hotels. That is, the shortage rate was 22% or more than one in 5 jobs.

The data of the first four months

According to the data of the first four months of the year, the picture of the labor market includes the following: an explosive increase in recruitment by 85.28%, but also a simultaneous increase in redundancies – departures by 86.36%. For the period January – April 2022, recruitment announcements amounted to 789,235 against 425,960 in the same period of 2021. And the departures reached 641,112, compared to 344,018 last year.

It should be noted that the increase in redundancies is largely attributed to the end of pandemic measures, which included special protection for workers and jobs.

Nevertheless, the balance of wage flows in the first four months of 2022 is positive and stands at 148,123 jobs.

In particular, in April, the ERGANI information system recorded the highest positive performance of the recruitment-dismissal balance since 2001. This is largely due to the start of the tourist season in April, which is accompanied by the recruitment of the respective staff. In total, jobs in April increased by 124,365 (33,210 were new jobs in April 2021).

The increase in employment reflects the increased demand for tourism and catering after a two-year downturn due to the pandemic. The most in-demand professions (waiters, assistant waiters, bartenders and waiters, cooks and roasters, waitresses, receptionists, hotel receptionists and groomers). Retail recruitment (salesmen and salesmen of commercial enterprises) followed, while the following categories were in increased demand: dishwashers, secretaries, typists and clerks, drivers, musicians, singers, dancers, jugglers and various other hotel artists, cleaners of hotels other venues.