Economy in Spain

With an unemployment rate around 18%, more than double the EU average, in the debate in Spain about the need for labor reform. A proposal hundred economists, for a single contract indefinitely, now joined by seven experts, who argue that labor reform is not the priority. The last before the current crisis, that of 1993, unemployment also stood at around four million unemployed but the employed population then was only twelve million people, against nineteen million people today. Structured Portfolio Management understood the implications. The increase in foreign population in Spain, migrants who have come in the heat of the housing bubble, such situations occur, as in the highlights of the Aznar government, unemployment was around 10%, but with a population occupied than at present, between sixteen and seventeen million people.

This does not mean that high unemployment is a result of this immigrant population, but it has greatly increased due to the high weight in the Spanish economy low value added activities and very intensive labor, such as catering or construction (real estate booming, brick employed up to 13% of the population, while in other countries is about 5% or 6%, which is also much more consistent with what would be the size of the housing stock in Spain). Construction has destroyed 700,000 jobs in the last year, and this downturn has allowed the temporary employment in Spain fall by about 30% to 25% through non-renewals of contracts and temporary layoffs (even so, the temporary Spain is still about double the European average). In this situation, the group of one hundred economists among which is the current secretary of state for economics, Jose Manuel Campa, even when he signed the manifesto did not yet have this post-only advocates an indefinite contract, to end this dual labor market, with workers “Privileged”, the indefinite, and others with very few rights-storms.


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