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.