William Chislett | Spain has moved from a labour market characterised during the Franco regime by heavy state intervention, no free trade unions, the prohibition of strikes and lock-outs, a low female participation rate and paternalistic legislation to one that is flexible, but marked by consistently high unemployment.
via The Conversation | Whether the Spanish economy is capable of returning to the levels of unemployment at the peak of the housing bubble between 2006 and 2007 is the key labour question and the principal concern of political economy.
This year the end of summer has not just been bad but really bad for the Spanish labour market. The number of unemployed in Spain increased in August by 47,047. To find a similar rise in August you have to go back to 2011. Also the number of people that signed up to social security fell by 202,996, the worse data for August since 2008. Finally, the day 31 August became the one when the most jobs were destroyed in history.
Arinsa | No government, even with the frail parliamentary minority enjoyed by the Pedro Sanchez administration, can allow itself the luxury of forgetting the current duality of contract in the labour market.
After the trade unions and employers have reached an agreement this week, the minimum wage in Spain will rise 4% to 736 euros, paid 14 times a year. This is 29 euros more per month than the current amount.
The difference between top managers’ salaries in Ibex-35 companies and the lowest salaries in these same firms is on average 207 times, which shows the salary gap in Spain is increasing.
Spanish labour market hits a new record: less than four million jobless people for the first time since 2008, according to Q2 Labour Force Survey. Figures of unemployment dropped by 340.000 between April and June to 3,914,300 people, therefore reaching a rate of 17.22%. Employment grows by 375,000 new jobs; working population increases to 18.81 millions.
According to the National Statistics Institute, the most normal average annual gross salary is around 16.500 euros. So once this has been paid 14 times a year and taxes and Social Security contributions have been deducted, this ends up as a little over 800 euros net per month. This sort of income will never drive consumption or housing sales and is not adequate for a European economy like Spain’s.
Reforms in Spain’s education system are key to guaranteeing future economic growth. But having a better educated population would also help to fight against rising inequality and poverty.
Companies have to make an effort to generate quality jobs so the recovery in confidence and consumption ends up being consolidated, says Mutua Madrileña chairman Ignacio Garralda.