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Valencian economists in favor of freezing the SMI









The College of Economists of Valencia (COEV) supports the decision to freeze the Minimum Interprofessional Salary (SMI) in 2021 and has warned of the negative consequences that a possible increase in this salary would have on companies and employment."The impact would be negative on employment, especially in groups such as young people and women, and the current situation of the already battered SMEs makes it inadvisable ," the entity said in a statement.

The COEV has stated that maintaining the current minimum Phone Number List wage unchanged at 950 euros per month is a "correct decision" given the current situation and the economic uncertainty generated by COVID-19.

In this sense, he has indicated that the planned increase that has now been paralyzed until the next semester to give greater scope for social dialogue could lead to an increase in unemployment, which would be more significant in young people and women as they are the groups that present "greater partiality." in employment, an aspect in which the SMI is especially relevant, according to INE data from 2018 .

In addition, he has warned that the increase could expel from the labor market the least qualified workers, who are the ones who receive this remuneration to a greater extent. "With equal pay, the candidate with the highest qualifications will be hired, even if it is unnecessary, leading to over-qualification, a problem for the Spanish economy ," highlighted the vice dean of the COEV, Alfredo Hernández.

In relation to the influence of the measure on companies, the COEV has assured that the most affected will be SMEs, "since with the passage of time business margins have been significantly reduced, which will make the situation for companies even more difficult." "They are having a worse time with the crisis . "

"An increase in the SMI can only aggravate the current situation ," insisted the vice-dean of Valencian economists. With respect to the Valencian Community, the College has pointed out that the consequences would be substantially felt in sectors such as tourism, with a GDP that represents 15% of the Valencian economy.

In his opinion, the effects of this possible increase would have a detrimental impact on a sector in which salaries are an important factor, since it is characterized by being very labor-intensive and by a high degree of temporary employment, and where SMEs are the majority. In this sense, the COEV has urged to reformulate and extend the ERTE with the aim of reducing damage in the sector and to favor the maintenance of jobs.

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