The number of employees per company is growing and companies are falling

The number of employees per company is growing and companies are falling
The number of employees per company is growing and companies are falling

The number of people employed per company in Spain has increased by 17% from 2020 to 2023, while in the same period, the number of companies has decreased by 5.8%, representing a total of 196,848 companies, according to the data from the study. “Trends in Spanish companies: quantity, types and number of employees”conducted by the business school TBS Education.

Along these lines, another positive fact that the study reveals is that the number of women employed by companies is increasing more than that of men. Specifically, 19% compared to 16%.

On the other hand, the autonomous community that stands out for having the highest ratio of employed persons/company is the Basque Country, which, in all the years covered by this research, had the highest ratios. It is followed by Murcia and Castilla La Mancha. In contrast, in the last positions of the table we find the companies of the Balearic Islands, those of Galicia and those of Asturias.

In short, the ratio of people per company has grown. While in 2020 there were 5.64 people employed per company, in 2023 there were 6.60 workers.

Affected companies

In 2020, the year in which the Covid-19 health crisis began, the number of companies was 3,404,428, a figure that stood at 3,366,570 companies in 2021 and continued to fall to 3,207,580 last year. If we focus on the period between 2022 and 2023, the number of companies is reduced by 6.5% as reflected in data from the Statistics National Institute (INE).

Considering the size of companies, between 2020 and 2023, micro-enterprises (fewer than ten employees) and medium-sized companies (between 50 and 250 employees) are the most affected categories. The reduction is 196,000 in the former and 1,200 in the latter.

In contrast, small companies (between 10 and 49 employees) and large companies (more than 250 employees) slightly exceeded pre-lockdown levels. Small companies increased by 319, 0.2%, and large companies by two more.

It should also be noted that the proportion of micro-enterprises in relation to the total number of companies fluctuates around 95.5%. In terms of importance, the next group is small companies, whose proportion fluctuates around 4%; in third place are medium-sized companies, whose percentage remains constant at 0.6%; and in last place are large companies, which represent between 0.1 and 0.2%.

In this sense, Edgar Sanchezauthor of the study, collaborating professor at TBS Education and expert in Consumer Behavior and Neuromarketing, states that “This is a worrying trend that affects micro-SMEs and medium-sized companies, as they play a key role in society as generators of employment and economic well-being.”.

Legal forms that are most reduced

Which legal forms have seen the biggest decline? According to the report, all types of companies have seen a decline in the four-year period, by between 4% and 5%. However, the legal models most affected are public limited companies, which have fallen by 15%, and limited liability companies, which have fallen by 9%.

The Community of Madrid, the one that loses the most

The Community of Madrid is the one with the greatest reduction in its business structure among the three most important autonomous regions (along with Catalonia and Andalusia). Specifically, 49,000 companies have been lost (almost 9%), compared to the 38,000 that have closed in Catalonia, which represents 6%; and the 10,000 fewer in Andalusia (1.9%).

Another important fact is that in 2020 Andalusia had 98.800 fewer companies than Catalonia. This difference has been narrowing and three years later the gap was reduced by 70,800 companies, which represents a variation of 39.5%.

It is worth highlighting, as the study shows, that eight of the 17 autonomous communities – Madrid, Catalonia, Andalusia, Valencia, Galicia, Castile and Leon, the Canary Islands and the Basque Country – concentrate 80% of the companies.

In this regard, they highlight that Madrid, Andalusia and Catalonia are home to 50.4% of the Spanish business fabric, with Catalonia having the largest number of companies. Specifically, in 2023, active companies established in Catalonia represented 18.4%; in Andalusia, 16.2%; and in the Community of Madrid, 15.7%.

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