At the end of last year, 44,343 businesses in the Balearics were registered with social security. Twelve months earlier the number was 48,153. The eight per cent decrease was the highest ever recorded. In 2009, when financial crisis had taken hold, the fall was 6.3%.
Getting on for 4,000 businesses disappeared in 2020. The president of the Confederation of Balearic Business Associations, Carmen Planas, says that the figures highlight the enormous damage that the pandemic has had on the regional economy. She adds that the number of businesses which ceased trading will be higher because of those which didn't appear in the figures. These were seasonal businesses closely tied to tourism which opened in the second quarter but were then unable to carry on.
Employers' associations and employment advisors fear that from next month there will be a flood of bankruptcies because businesses simply don't have liquidity. While some bars and restaurants have ceased trading, all sectors of the economy are affected, especially the smaller businesses.
In terms of loss of employment, the Balearics suffered the largest fall last year. This was principally because there were comparatively few temporary jobs. Permanent employees, including those with 'fijo discontinuo' contracts, were relatively unaffected because of employment protection mechanisms. The number of employees on ERTE terms was, in percentage terms, one of the highest in the country. Registrations with social security were, on average, 8.7% lower than in 2019. This decrease represented the loss of more than 44,000 jobs.