Small businesses are aging and have a greater presence of immigrants

The retail sector in the Basque Autonomous Community (BAC) is ageing and shows a reduction in self-employed workers, a greater presence of immigrants and an increase in salaried employees with high job turnover.

Other defining features indicate that the number of permanent contracts is 10 points above the average; 95.4% are micro-SMEs; more than 69% only employ one or two people, and84% do not open on Sundays or holidays.

The Basque Minister of Tourism, Trade and Consumption, Javier Hurtadopresented this Thursday at a press conference the data from the Retail Trade Barometer for 2023, prepared by his department, and a diagnosis of employment in the sector from 2016 to 2021, carried out by the Iseak Foundation.

Hurtado has highlighted that trade is one of the three main economic activities of the Basque Autonomous Community, together with industry and health services, and represents 13% of employment (135,000 families) and 11% of GDP.

The challenges, he stressed, come from a society in which five generations coexist and which is characterised by “a radical change in consumption and purchasing habits”.

The majority of existing businesses in 2023 were newly created (42.7%, with a maximum of 5 years of existence), followed by those with family tradition (28.4% and with a downward trend) and those of large chains (15.4%).

70.4% open to the public on a split-shift basis, with a tendency for continuous opening to grow (30%), and with a majority presence of women (68.8%).

Nine out of ten open on Saturdays (57% only until midday), and 84% close on Sundays and public holidays. Only 4.5% are in favour of opening on these days.

58.7% occupy premises in rentat a high price, reaching an average of 2,574 euros per month, and 44% identify the weight of tourism, which contributes 6% of visits.

The employment report prepared by the Iseak Foundation, for its part, establishes that between 2016 and 2021 the membership of this sector to Social Security has lost 1%, as well as the fact that in this sector there are more permanent contracts, partly because family members are employed, as highlighted Sara de la Ricadirector of the aforementioned entity.

He self-employment has been reduced by 7.9%, while the wage employment has grown by 2% and has a high turnover rate, with young people and immigrants accounting for both new arrivals and departures.