As thousands took to the streets at the weekend, it quickly became clear that the Partido Popular’s approach to job creation had more than a few critics. Focusing their anger on reforms passed on February 9, critics called out the new government’s efforts to reduce mandatory severance pay from 45 to 33 days per year worked and allowing what they felt was an unfair freedom for companies to opt out of collective bargaining agreements and adjust wages and hours according to their financial standing. The Rajoy government insisted that it “wants to give firms the ability to modify workers' hours in response to demand rather than simply laying them off, bringing an end to the rapid rise in … [Read more...] about Rajoy, reform and the burden of employment expectations
labour market
Jobless in Spain: a personal viewpoint
In January of this year, I became one of Spain's five million unemployed. The redundancy in itself has not hurt me badly. I receive a decent monthly unemployment benefit (with entitlement for 16 months) and, on a personal level at least, must admit to being pleased that my husband is one of Spain's 2.5 million job-protected funcionarios. The circumstances surrounding my redundancy, though not atypical, were legally ambiguous. “Ambiguous” because I had been hired to work until the completion of an unspecified project (or 'Fin de Obra') under what remains to date the most common type of contract in Spain. As I was hired in 2009, more than two years prior to recent changes in … [Read more...] about Jobless in Spain: a personal viewpoint
With almost five million out of work, Spain’s unemployment crisis rages on
In January 2009, Spain’s then Labour Minister Celestino Corbacho declared confidently that the number of jobless people in Spain would not surpass the four million mark. It took only three months for him to eat his own words as unemployment shot past that psychologically significant level. It has continued to tick upwards ever since. Corbacho lost his job in October last year. Now another minister, Elena Salgado, who holds the economy portfolio and serves as second deputy prime minister, is also putting her credibility on the line. In a press conference on Thursday, she said five-million plus job seekers is not on the cards. “In the opinion of the Economy Ministry that figure will not … [Read more...] about With almost five million out of work, Spain’s unemployment crisis rages on
Saving the pension system
For many years politicians, economists and demographers have been nervously watching a slowly ticking economic and social time-bomb. It is set to detonate – depending on your calculations – sometime after 2025 as an aging population and shrinking workforce combine with explosive effect, undermining the financial foundations of the Spanish pension system and rupturing the welfare state. Prime Minister José Luis Rodríguez Zapatero, who might like to imagine himself as a Hollywood action hero putting his life on the line to cut the red wire and defuse the bomb, has decided to risk his political future to reform the pension system and soften the retirement blow to today's and tomorrow's … [Read more...] about Saving the pension system