LABOUR MARKET IN SPAIN

TOPICS

• 1. WHAT IS IT?

• 2. LABOUR MARKET INDICATORS

• 3.CHARASTERISTICS OF LABOUR MARKET IN SPAIN

-UNEMPLOYED : YOUTH, MALE AND FEMALE

-JOB SECURITY

• 4.UNEMPLOYMENT BENEFITS

1. WHAT IS IT?

EMPLOYEES

Demand employment

Employment Agencies Offer employment

EMPLOYERS

Employment

• State Employment Service

• Temporary Employment Agencies

• Employment Agencies

In our region

2.LABOUR MARKET INDICATORS

• The Economically Active Population Survey (EAPS) studies the quarterly evolution of the labour market according to the information obtained from about 65000 families.

There are four possible situations:

1. Active Population: persons 16 and over who, during the reference week (previous to that in which the interview was carried out), supply labour for the production of goods and services or are available and in condition to be incorporated into that production. They are subdivided into employed and unemployed.

2. Employed: These are people 16 or over who during the reference week have been working for at least one hour in exchange for remuneration in cash or in kind or those with work who have been temporarily absent because of illness, holidays, etc.

3. Unemployed: These are people 16 and over who during the reference week have been without work. They are available to work and actively seeking work.

4.Inactive Population: population of 16 or over not included in any of the previous categories receives this consideration.

ACTIVE INACTIVE Employed population Students

Unemployed population: Homemakers

-without work Retired

-Currently avalible for work

Others

-Seeking work

STATISTICAL RATIOS are calculated as follows:

Active Rate = ACTIVE POPULATION x 100% POPULATION OVER 16 YEARS

Employment Rate= EMPLOYED x 100 %

POPULATION OVER 16 YEARS

Unemployment Rate = UNEMPLOYED X100% TOTAL LABOUR FORCE

3.CHARACTERISTICS ABOUT OUR LABOUR MARKET

• I.UNEMPLOYMENT

– Structural unemployment: it is due to permanent changes in consumer demand.

– Current economic situation: it is due to economic crisis in which consumption and production are reduced.

Unemployment rate

• The number of unemployed in Spain is about 4.150.000 people. Active Population is still under 23 millions.

The unemployed rate increased from 2006 to 2013. Nowadays, it

shows a slight decline.

The unemployment rate is a percentage that expresses the proportion of people unemployed over labour force in Spain

UNEMPLOYEMENT RATE compared to other European countries

YOUTH unemployment

Youth unemployment rate is generally much higher than the unemployment rate for all ages.

Spain is one of the European countries where this rate is higher.

The economic crisis severely hit the young.

Comparative youth unemployment rate with different countries

FEMALE/ MALE unemployment

(Women))

(Men )

• Women have been more affected by unemployment than men. As a result, the government gives companies incentives for hiring women as reductions of social security contributions.

• One of the active employment policies is to receive social benefits for employing women in jobs which traditionally have been done by men.

• However nowadays women and men are still not equal in jobs despite of incentives.

Unemployment rates, 2014, ranked on the average of male and female

II. JOB SECURITY

• The lack of Job security is another main

problem in our labour market.

• Most of the contracts are temporary.

• The 2012 reform has strengthened incentives for employers to hire on open-ended contracts, but in the ongoing recovery still a large fraction of new contracts are fixed-term.

• In 2014, the proportion of employees in the EU-28 with a contract of limited duration (fixed-term employment) was 14.0 %. More than one in four (28.3 %) employees in Poland had a temporary contract and this proportion was above one in five in Spain (24.0 %)

• The labour reform in order to fight against unemployement due to the crisis hasn´t resolved this problem. It still produces instability in labour relationships and makes the regimen of dismissal easier and cheaper.

• In the absent of just cause the worker receives a compensation for dismissal equal to 33 days’ salary per years worked (before the reform was 45 days’ )

4. UNEMPLOYMENT BENEFITS

• This covers the contingency of unemployment for those people who, while willing and able to work, lose their job temporarily or permanently, or have their working hours reduced by at least a third, with the corresponding loss or reduction in wages due to any of the reasons established as legally unemployed statuses.

Duration of unemployment benefit

Contributions period ( in days ) Benefic period ( in days )

From 360 up to 539 120

From 540 up to 719 180

From 720 up to 899 240

From 900 up to 1079 300

From 1080 up to 1259 360

From 1260 up to 1439 420

From 1440 up to 1619 480

From 1620 up to 1799 540

From 1800 up to 1979 600

From 1980 up to 2159 660

From 2160 up to 720

Non contributory unemployed benefit

• Workers who have exhausted their contributory unemployment benefit and have family responsibilities.

• Workers who are over 45 and 55 years of age who have exhausted their unemployment benefits and don`t have family responsibilities.

• Returning migrant workers

• Individuals that have been discharged from prison or who have had their sentences remitted due to drug rehabilitation.

• In 2016 in order to apply for the benefit, income must be no more than 491,40€ in a month.

• There are other aids that aren´t subsidies such as:

PREPARA it is an exceptional measure for people who have finished all benefits.

RAI (Insertion active rent ) people with difficulty to work.

PAE ( Program to active employment )

• Sources: http://www.seg-social.es http://www.ine.es/ https://www.sepe.es/ www.oecd.org/spain/Employment-

Diana Martín Gutiérrez Diego Cid Jiménez Piedad Cuadrado Nieves

CFGS 1º de Iluminación .