13% of Spain's hospitality businesses with all workers on furlough

Hospitality continues to be badly affected. | Efe (Ana Escobar)

Majorca Daily Bulletin reporterPalma21/01/2021 16:05

A National Statistics Institute (INE) report indicates that almost thirteen per cent of businesses in the hospitality and transport sectors have yet to bring back employees who are on ERTE terms. The INE also finds that 33.8% of businesses in these sectors dismissed employees or did not renew their contracts when the "new normal" arrived.

During the original state of alarm, 52% of hospitality and transport businesses requested ERTE for all or some of their employees. In the second half of 2020, companies were bringing employees back from ERTE at different rates depending on the sector. In general terms, 60% reinstated all their workers - this was 77.9% in the construction industry and 38.9% in hospitality and transport.

With the new normal in the second half of the year, 37.8% of hospitality and transport businesses had to rerorganise working hours. This was almost identical to industry - 37.7%.

For the first half of 2021, 5.6% of companies plan to increase their workforce, 5.8% intend to bring back workers from ERTE, and 9.3% believe they will have to reduce their workforce.