Beyond the uncertainties, the economy of the Region of Murcia follows an upward trajectory that leads it to complete the recovery of the damage derived from the coronavirus crisis, with clearly favorable signs that are observed in the labor market, which leaves reasons for optimism. In fact, although social inequalities, which worsened with the pandemic, “remain latent”, it is also observed that there has been a reduction. And this is seen in the analysis carried out by the Economic and Social Council (CES) in its ‘Memory on the socioeconomic and labor situation of the Region of Murcia 2022’, where it is verified that the income increases in recent years, despite of the crisis, has led to a nine-point increase in the percentage of the population considered as middle class since 2015.
Exactly, the distributive changes from the evolution of the Living Conditions Survey (ECV) of the INE confirm that there has been a recomposition of the distribution of the population by income groups in the Community, so that what the researchers identify as middle class already reaches 56.7% of the citizens of the Region, compared to the rate of 47.6% that was computed seven years ago. An interval of evolution that stands out much more in comparison with the national average, since in that same period it has varied from 56% to 58.7%. This means that despite the improvement, the Region is two points below the national data.
For this reason, in the communities as a whole, the regional territory is among those that present “inequality below the Spanish average and in the group that presents a greater reduction in the period studied (2025-2021)”, according to collects in the document approved this Monday morning unanimously in the Plenary of the CES, in which the social agents are represented.
Average annual growth of median income
INE Living Conditions Survey (ECV)
2015/ECV-2022
Source: Quality of Life Indicators (INE)
and own elaboration.
Change in the inequality ratio
By communities (ECV)-2015/ECV-2022
Percentage of population by income groups
Regarding the average income
Source: ECV microdata and own calculations.
Average annual growth of median income
INE Living Conditions Survey (ECV)
2015/ECV-2022
Source: Quality of Life Indicators (INE)
and own elaboration.
Change in the inequality ratio
By communities (ECV)-2015/ECV-2022
Percentage of population by income groups
Regarding the average income
Source: ECV microdata and own calculations.
Change in the inequality ratio
Average annual growth of median income
INE Living Conditions Survey (ECV)
2015/ECV-2022
By communities (ECV)-2015/ECV-2022
Percentage of population by income groups
Regarding the average income
Source: Quality of Life Indicators (INE)
and own elaboration.
Source: ECV microdata and own calculations.
Of course, in the considerations elaborated by those in charge of the study, it is warned that although income inequality has receded in recent years, nevertheless the differences “continue to be very pronounced”. In fact, in the Community, the first four deciles of the population with the lowest income -ten groups of equal size, which are made up in order from the lowest to the highest income- accumulate 20.6% of this. This is somewhat less than the last decile, which concentrates 21.1%. Undoubtedly, figures that justify “the need for the intervention of public powers to strengthen social cohesion.”
The president of the Economic and Social Council in the Region, José Antonio Cobacho, together with the business representative Miguel López Abad, president of the Chamber of Commerce of Murcia, as well as the general secretary of the CC OO and UGT unions, Santiago Navarro and Antonio Jiménez , respectively, and the professor of Labor Law and Social Security at the University of Murcia, Faustino Cavas -one of the authors of the work- have been in charge of presenting the main considerations established in the report.
Faced with income differences that remain “very pronounced”, insists on the intervention of public powers to strengthen social cohesion
Nor does it escape anyone that there are weaknesses that last beyond the improvements. For example, the rate of risk of poverty or social exclusion (Arope) in the Region of Murcia stands at 31%, “five points higher than that of Spain”. Similarly, despite the favorable signs observed in the labor market and the growing demand for qualified workers for unfilled positions, the unemployment figures remain high, especially among young people.
Both the years 2021 and 2020 were greatly influenced by the significant public intervention to maintain employment and help the lowest incomes, in order to correct the rise in greater inequality in the first year of the pandemic. For this reason, it is considered that “it must be a priority of economic policy to achieve a more cohesive society”. And, in this sense, it is insisted that in the short term, “an essential element that favors the reduction of inequality is the income policy”, through “the recovery of the purchasing power of households”, since wages are lower than those of the whole of Spain.
Although employment is created, weaknesses such as high youth unemployment, temporary employment and long-term unemployment are cited
Because while, on the one hand, employment continues to show signs of vitality, with an employed population estimated at an average of 650,000 people in 2022, a new all-time high; On the other hand, there are still some weaknesses in the labor market in the Region of Murcia, such as high youth unemployment, excessive temporary employment, part-time work as an involuntary option since it cannot be found full-time, and long-term unemployment. .
Collective negotiation
In a context of rising employment, the Economic and Social Council emphasizes that “collective bargaining is the vehicle that must implement the improvement of its quality”. It even highlights that “beyond the usual focus of interest on salary increases, there are other aspects to take into account such as” the necessary flexibility that business efficiency requires with decent work, stability, the fight against the submerged economy, environments healthy workplaces or the inclusion of groups at risk of social exclusion«.
Given this context, “policies aimed at improving opportunities, working conditions and employability of groups with lower wage income, young people, immigrants and women” are required. Nor is the question ignored that “it is necessary to continue influencing social policies to protect households with children”, as well as improving opportunities to reconcile work and family life, with an increase in help lines for families and children, “to achieve a positive redistributive effect and greater impact.”
On the tax side, the importance of reviewing the complex system of deductions from the tax base and the personal income tax and social contributions is pointed out in order to accentuate its potential for income redistribution. Likewise, it is indicated that increasing the progressiveness and protective intensity of the social protection system would promote the correction of inequality. On the other hand, it is proposed from the CES to design an authentic basic income system of state competence, “that culminates the integration of the dispersed and, in many cases, ineffective income guarantee system, and improves the effectiveness of the current Minimum Income system Vital, which is leaving many situations of real need without coverage.
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