Still hit by the effects of the Covid-19 pandemic, the aerospace sector will lose jobs again in 2021, according to a study by Insee Occitanie. It is an important part of the regional economy, but does not appear to be slowing the recovery in activity given the increase in salaried employment. A dynamic in employment that will result in a 0.7 point drop in unemployment in Occitania in the 4th quarter of 2021 alone.
During the past year, employment has continued to grow in Occitania, logically causing the unemployment rate to fall by 0.7 points† For example, in the last quarter of 2021, 14,100 jobs were created, an increase of 0.7%, INSEE notes in its latest study. A trend that even the labor market exceeds pre-crisis levels, especially by breathing new life into the meantime. While all sectors appear to be green again, industrial employment is not yet benefiting from the effects of the economic recovery, weighed down by an aerospace sector not returning to pre-Covid activity†
Aerospace sector loses 1,900 jobs in Occitania
If 2021 marks a resumption of activities in the aerospace sector in Occitania, it will remain timid and the effects of the crisis caused by the Covid-19 pandemic will not be able to be cushioned. Job losses in the sector are indeed stabilizing, but the workforce continues to decline: 1,900 employees lost their jobs there in 2021† By comparison, companies active in aerospace or aerospace had to give up 4,800 people by 2020. Three quarters of the losses were recorded in the Haute-Garonne. The workforce in the sector is therefore still declining, but less than the year before.
However, business as a whole is not affected in the same way. As noted by INSEE in its latest economic situation report, the companies that make up the sector are divided into the tertiary sector (suppliers and service providers, engineering firms, software publishers, design firms, etc.) and industrial (parts, electrical and electronic equipment, etc.), the latter alone accounting for two-thirds of the workforce. And if employment in the tertiary sector increases again (+3.6%)driven by the IT sector, this is not the case in that of industry where it fell by 4.8%† Establishments that manufacture electrical, electronic equipment and machines, and those in the metal industry are the hardest hit.
And even though the aerospace industry represents almost 6% of paid jobs in Occitania, its sluggishness does not seem to slow down the dynamics of the labor market as a whole.
The dynamics of regional employment
In reality, the economic recovery that started in 2020 will be confirmed in 2021† Temporary work is proof of this, as it is the first leading short-term indicator of the evolution of economic activity. After a fall in 2020, temporary work increased by 5.8% in Occitania at the end of 2021, across all sectors, above pre-crisis levels† Even though some of the use of this type of worker can be explained by “compensation for absenteeism related to the fifth wave of Covid-19 absenteeism,” according to INSEE.
— Insee Occitanie (@InseeOccitanie) April 27, 2022
A positive impulse, which logically results in the Creating employment. In Occitania, 14,100 were observed in the fourth quarter of last year, doubled in three months. For example, wage employment is above pre-crisis levels, with almost 45,000 more jobs than in 2019. Momentum mainly thanks to the private sector, which employs a total of 16,500 more than a year ago. A trend that is confirmed in all the departments of the region, especially in the Hérault, where 3,000 jobs were created in the last three months of 2021, and in Haute-Garonne where 2,900 recruitments took place†
So many factors that generate a fall in regional unemployment† This decreases by 0.7 points and stands at 8.8% of the labor force† It is now below pre-crisis levels. Number of job seekers registered with Pôle Emploi without any activity, effectively decreased by 5.3% to reach 333,050 people.