The IMF highlights that the Spanish population, like that of the other developed economies, will age over the coming years. The number of pensioners is increasing faster than the number of active workers. So the average salary is beginning to come in at the same level or below that of the average pension.
The number of Spanish unemployment fell by 47,697 in March in comparison with the previous month, according to figures from the Labour ministry. Figures of registered unemployed totaled 3.42 million, which was the lowest level of the last nine years.
For the past eight years, Spain’s Social Security has been in the red: while revenue has increased by just 1.8% vs 2009, retirement pension spending is 54% higher than in 2009. Given this, “it is vital to define a new intergenerational social pact”, says CaixaBank’s experts.
The Social Security numbers over the last few years are really alarming. Although we still have not had any official confirmation, experts estimate that at end-21016 the system had a hole of nearly 18 billion euros, 40% more than in 2015, and almost six times over budget.
The Social Security’s pensions fund is emptying. And this is causing huge alarm amongst current and future pensioners who believe, incorrectly, that “there’s going to be no money left and one day they’ll tell us that there is no monthly payment.”
F. Barciela/ F. G. Ljubetic | Labour costs in Spain stagnated during the crisis, but the idea that they eventually have to rise again has quite a few supporteres, including many businessmen. It would even be a postive driver for consumption and the economy general.
MADRID | The Corner | Unemployment continues to afflict Spaniards and official figures released on Tuesday added even more pressure on the authorities: 8,700 more jobless people were registered in August, the first rise in unemployment after six months of improvement.
MADRID | By Fernando G. Urbaneja | May unemployment and social security registration data in Spain are the best monthly as well as yearly, and even regarding the end of current year since 2007. Although jobless rate is still painfully high, more than 26%, the trend is changing.
MADRID | By Julia Pastor and Fernando G. Urbaneja | 1,949 unemployed less in Spain in February. Agreed that it is just a drop in the ocean of almost 6 million of jobless Spanish people, but the figure symbolizes an improvement. A tiny one, but positive at last. For the first time in four years, February’s affiliation to social security increased in 40,000 people, which means reaching a yearly positive rate of 0.4%. If we take a look at the number of affiliated, though, it makes a total of 16.12 million in Spain’s labour market, which surprisingly is one of the worst data in all XXI century.
MADRID | By Tania Suárez | The Spanish Economic and Social Council (ESC) recently received the Government’s draft of the public pension system reform, which is causing lots of controversy since many retirees may lose their only income. In that sense, a group of Spanish economists and jurists have signed a manifesto to explain why the reform is not such a good idea.