Employment changes in knowledge-based industries in large urban areas of Spain: Impact of the economic crisis and austerity policies

Abstract

The aim of this article is to analyse the impact of the economic crisis and austerity measures on knowledge-intensive industries in seven large urban areas in Spain. We will attempt to respond to three key questions: How have these activities evolved since the crisis? How have the fiscal austerity measures in force in the Eurozone since 2010 affected them? And finally, have large urban areas followed different development paths in recent years based on the extent of their exposure to the crisis? The analysis of employment tendencies confirms that both common trends and disparities exist, with knowledge-based industries displaying a resilient and countercyclical behaviour. Moreover, the implementation of fiscal austerity policies has had a very negative impact on these activities, but the individual consequences in each case depend on the strengths and weaknesses accumulated by each urban area over time.