General Feautures of Spanish Labour Market

The spanish labour market has been struck by the financial crisis pritty hard. There is almost 20% of unemployment in Spain. This kind of percentage would normally not be brought in connection with a country like Spain. Creating employment in Spain is one of the main feautures to be concerned about.

Spain should choose between active or passive policies for its labour market. Most of the countries that are progressing in their GDP have been or are using active policies. There is also a increasing weight of active policies with respect of passive policies in the government budget. This trend is starting to change, in 1993 passive policies represented 87,1% and in 2000, 57,4%.

Passive policies,can be divided in two categories: insurance benefits and assistants benefit. The first one are the workers benefit conputed on basis of  the time and level of contribution. The second category is a compliment of insurance benefits provided the worker as acomplished a minimum time of contribution.

Active policie consist of labour market traning,subsidies to foster employment,measuras in favour of disadvantage social groups and efforts of aming to improve the public employment services.

Both of these policies have their good and their bad side, now it is for Spain to choose between these two policies, now because the Labour Market can’t wait any longer.


2 thoughts on “General Feautures of Spanish Labour Market

  1. I think that unemployment in Spain has to be really solving. Because 20% is really high rate. I think that active policy has to be predominated above pasive. But it´s question what will be in fact more effective. But just benefits and support in unemployment is accroding my opinion not enought. It has to be create new work places and reskilling is important too. It helps people obtain chance to get involved into labour market. I think that unemloyment depend on parts of Spain. As usually is North more industry and South more agriculture. Work is influence on season and it is not so easy to deal with uneployment. But special program is really necessary and can make the situation better.

  2. The consequences of Spain’s mixing of policy should be considered around the world. It is a growing trend that countries would rather play politics rather than actually work towards solving a problem.

    If, for example, 15% of the legislature favors one plan A, 40% favors plan B, and 45% favors yet plan C, then the plan to get implemented will be 50% plan B and 50% plan C. However, this approach solves nothing, because with only half of each plan in implementation, then neither will have the needed power to create the effect needed to solve the issue. Instead, these two plans might even work towards canceling out each-other’s positive effects, and thus, muddle the problem even more, which makes it more difficult to resolve.

    As the author said, Spain, and most other industrialized countries in the world, must make a decision. Although compromise is good in some situations, splitting the issue 50-50 does no one any good when it comes to economics. The market simply does not work this way.


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