This article's factual accuracy may be compromised due to out-of-date information.(October 2017) |
Unemployment rates in Spain vary across different regions of the country, but they tend to be higher when compared to other Western European countries.
As of October 2024, the unemployment rate is at 11.21% of the labor force. [1]
Unemployment rates in Spain rose sharply during the late 2000s and early 2010s. Unemployment was at 8% between 2006 and 2007. Starting in 2008, the Spanish economic crisis caused the rate to rise past 20% in 2010 and 25% in 2012.
Spain has one of the highest unemployment rates compared to other OECD countries. [2] As of October 2024, the unemployment rate is at 11.21% of labor force. [3] There has been an upward trend since the 1990s, and this trend has historic roots. [4] Unemployment began rising in Francoist Spain during the 1970s. [5] During the Francoist Spain, trade union activism was prohibited and social security benefits of the modern welfare state were lacking. In 1972, 2.7 million jobs in agriculture were replaced by 1.1 million jobs in the public sector, further increasing unemployment. [6] Although unemployment is a problem in other OECD countries such as Italy and Turkey, data shows that the extent of increase and the persistence is much larger in Spain. [7]
Spain suffers a high level of structural unemployment. Since the economic and financial crisis of the 1980s, unemployment has never dipped below 8%. One leading cause is an economy based mostly on tourism and building sectors, as well as lack of industry. The most industrialized region is Basque Country (where industry is around 20–25% of its GDP); its unemployment rate is 2.5 times lower than those of Andalusia and the Canary Islands (where industry is only 5–10% of their respective GDP). In the last thirty years, the Spanish unemployment rate has hovered around double the average of developed countries, in times of growth and in times of crisis. From the start of the crisis of the 1990s, unemployment fell from 3.6 million to two million, however that figure stagnated throughout the stable times to the present crisis.
Unemployment benefits are high enough in Spain to sustain basic expenses, though special consideration is only given to those in the first year of being unemployed. [8] Those that are unemployed are at the risk of losing their home. According to research data by Amnesty International, [9] thousands of people are being forcibly evicted without alternative accommodation by the state. Among these include approximately 26,800 rental evictions and 17,000 mortgage evictions. As unemployment is rising higher in Spain, there is limited public spending on housing that would grant necessary shelter. Women traditionally are not trained for the workforce, therefore single mothers and survivors of gender violence are particularly affected. This is, however, changing with a rise of women enrolling in higher education. [10] In July 2018, the UN Committee on Economic, Social and Cultural Rights upheld a complaint against Spain for not having means of alternative housing for evicted families. [11] Due to high unemployment levels, employed workers are afraid of losing their jobs and are more reluctant to refute existing working conditions. There are reforms being undertaken by the government in Spain to address this, including reduction of temporary work contracts. [12]
Unemployment reduces household income which in turn diminishes domestic consumption and quality of life. The mental health of the unemployed and their families deteriorates. The emancipation period is extended and consequently the birth rate decreases as it is difficult to start a family with minimal economic guarantees. Social exclusion is triggered, evictions increase, and families start to default on bills for basic utilities such as water, electricity and gas, leading to energy poverty.
There are efforts in Spain to integrate people with disabilities into the workforce. [13] These efforts include a plan to normalize disability in the work environment with training and professional development implementation. [14] According to the survey of the Spanish National Statistics Institute, 8.5% of the Spanish population is disabled. [15] Disability has a correlation with seniority, as more than 34.7% disabled individuals are over 65. [16] According to data, there are more disabled women than disabled men. [17] In general, disabled people have more difficulties carrying out basic activities and due to these economic hardships. Many people argue that government and economic aid is imperative. [18] Unemployment is one of the largest issues the Spanish disabled community faces. More than 87.1% of disabled people that are able to work don't have a job, and often have difficulty finding one due to labor market barriers. [19] Some factors addressing unemployment among the disabled include insufficient education, lack of information, negative attitude from some employers and HR representatives, and insufficient means of transportation or training. [20] While there are measures being taken to promote employment among the disabled, there is still growth in the number of disabled seeking a job. One measure is the Law for Disabled Peoples' Social Integration, which requires companies with over 50 employees to be made up of at least 2 percent disabled workers. [21]
# | Autonomous community | Unemployment rate (Q3 2024) |
---|---|---|
1 | Ceuta | 29.30 |
2 | Melilla | 27.09 |
3 | Andalusia | 16.06 |
4 | Extremadura | 13.79 |
5 | Canary Islands | 14.40 |
6 | Valencian Community Valencia | 13.04 |
7 | Castilla–La Mancha | 12.58 |
8 | Asturias | 9.26 |
9 | Balearic Islands | 6.17 |
10 | Region of Murcia | 11.95 |
11 | Madrid | 9.65 |
12 | La Rioja | 10.22 |
13 | Castile and León | 9.34 |
14 | Navarre | 7.72 |
15 | Galicia | 8.84 |
16 | Catalonia | 8.83 |
17 | Aragon | 8.66 |
18 | Cantabria | 7.17 |
19 | Basque Country | 7.16 |
Source: Tasas de paro (INE) |
Unemployment rates are obtained through a procedure known as the Economically Active Population Survey. It is taken every three months. The survey divides the population of 16 years or older into four groups:
The unemployment rate is calculated as the number of unemployed workers divided into the active population, and is expressed as a percentage. In other words, it is not a proportion between the total of the unemployed people and the total population, but economically active people.
In Francoist Spain, women found themselves living under a conservative gender ideology, where they were viewed as being consumers and producers of the market economy. [22] Under the authoritarian system of the Spanish State, nationalistic pride situated women in a role meant to serve best the state and the nation, which consisted in the domestic work of nurturing and caring for children. If these roles steered outside the household, they were best funneled through the work sector of teaching and nursing. [23] The culture of Spain, with its fluctuation of political leadership, visibly demonstrates the fluctuation of sovereignty for women’s rights in the country. Between 1931-1936, the Second Republic generated legislation for women granting them new rights of which they were deprived of before. During this period of time, European countries were experiencing a movement towards the equalization of the sexes, which was reflected in the constitution of the New Republic. The constitution extensively accorded women legitimate status under laws on civil marriage and divorce. [24] With the Spanish Coup of July 1936, legal measures that progressed women into the social and economic sector of equal access into the labor market became restricted once again, under the desire of restricting women to the confines of the private sphere of domestic work. [25]
The period of transition to democracy carved the way for the reemergence of women in social and economic participation. A revival of sorts for women took initiative in the late 1970s, with the re-emergence of legality in the social atmosphere of Spain; in particular to the restoration of free and equal access to work and right to hire. [26] With women being able to return to the workplace, a significant shift took place in relation to the family life. Domestic life for women was shifting away from normality and into career pursuits. During La Transicion, participation rates in the labor force steadily grew due to structural shifts in education, and birth rates decreased which caused an increased rate in 1975 of 30.20, followed by 34.71 in 1982, and 41.20 in 1986. [27] In addition to the progression of women in the workforce, the elimination of Franco’s “Fuero del Trabajo” in 1938, which enforced the replacement of women workers with men, serves as a reminder of how far woman have come in terms of women’s active role in the economic development of Spain. [28] Although progress has been made, it is still from being considered a pure gender equal state. A wage gap exists in Spain, where in 2005, women residing in Spain earned 72 percent less than men did. [29]
Due to legislation better serving opportunities for women, this once marginalized group has seen progress within the country of Spain, but not to the extent of full equality. On March 8, 2018, Spain underwent a 24-hour strike on International Women’s Day, where women were backed by unions in support of gender equality between women and men. Roughly 5.3 million people went on strike. This was representative of both male and female participation, because Spain’s union laws prohibit strikes if they only apply to one of the sexes. The turnout represented 11 percent of the population and 23 percent of the labor force. [30] Justification for the strike appeared to be approved by 82 percent of people. As argued by the participants of the strike (although previous legislation has to an extent helped women), Spain’s public sector still finds that men make an average of 13 percent more than women and 19 percent more than women in the private sector. In 2016, women in the European Union earning gross hourly earnings 16.2 percent below those of their male counterparts on average. [31] According to reports by Eurostat, the “explained” gender gap in Spain is roughly 4 percent in account of variation in characteristics for both women and men in regards to the occupational and sectional segregation in the labor markets. [32]
Unemployment, according to the OECD, is the proportion of people above a specified age not being in paid employment or self-employment but currently available for work during the reference period.
Welfare spending is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifically to social insurance programs which provide support only to those who have previously contributed, as opposed to social assistance programs which provide support on the basis of need alone. The International Labour Organization defines social security as covering support for those in old age, support for the maintenance of children, medical treatment, parental and sick leave, unemployment and disability benefits, and support for sufferers of occupational injury.
In economics, a discouraged worker is a person of legal employment age who is not actively seeking employment or who has not found employment after long-term unemployment, but who would prefer to be working. This is usually because an individual has given up looking, hence the term "discouraged".
The labor force is the actual number of people available for work and is the sum of the employed and the unemployed. The U.S. labor force reached a record high of 168.7 million civilians in September 2024. In February 2020, at the start of the COVID-19 pandemic in the United States, there were 164.6 million civilians in the labor force. Before the pandemic, the U.S. labor force had risen each year since 1960 with the exception of the period following the Great Recession, when it remained below 2008 levels from 2009 to 2011. In 2021, The Great Resignation resulted in record numbers in voluntary turnover for American workers.
The Current Population Survey (CPS) is a monthly survey of about 60,000 U.S. households conducted by the United States Census Bureau for the Bureau of Labor Statistics (BLS). The BLS uses the data to publish reports early each month called the Employment Situation. This report provides estimates of the unemployment rate and the numbers of employed and unemployed people in the United States based on the CPS. A readable Employment Situation Summary is provided monthly. Annual estimates include employment and unemployment in large metropolitan areas. Researchers can use some CPS microdata to investigate these or other topics.
In macroeconomics, the workforce or labour force is the sum of those either working or looking for work :
The Frisch elasticity of labor supply captures the elasticity of hours worked to the wage rate, given a constant marginal utility of wealth. Marginal utility is constant for risk-neutral individuals according to microeconomics. In other words, the Frisch elasticity measures the substitution effect of a change in the wage rate on labor supply. This concept was proposed by the economist Ragnar Frisch after whom the elasticity of labor supply is named.
Active labour market policies (ALMPs) are government programmes that intervene in the labour market to help the unemployed find work, but also for the underemployed and employees looking for better jobs. In contrast, passive labour market policies involve expenditures on unemployment benefits and early retirement. Historically, labour market policies have developed in response to both market failures and socially/politically unacceptable outcomes within the labor market. Labour market issues include, for instance, the imbalance between labour supply and demand, inadequate income support, shortages of skilled workers, or discrimination against disadvantaged workers.
The Italian welfare state is based partly upon the corporatist-conservative model and partly upon the universal welfare model.
As the economy of China has rapidly developed, issues of labor relations have evolved. Prior to this reform, Chinese citizens were only allowed to work where they originated from. Since 1978, when China began labor force reforms, the overwhelming majority of the labor force were either working at State owned enterprises or as farm workers in the rural countryside. However, over time China began to reform and by the late 90's many had moved from the countryside into the cities in hopes of higher paying jobs and more opportunities. The only connection between the countryside and the city soon became that there was a huge floating population connecting them. Independent unions are illegal in China with only the All-China Federation of Trade Unions (ACFTU) permitted to operate. China has been the largest exporter of goods in the world since 2009. Not only that, in 2013 China became the largest trading nation in the world. As China moved away from their planned economy and more towards a market economy the government has brought on many reforms. The aim of this shift in economies was to match the international standards set by the World Trade Organization and other economic entities. The ACFTU that was established to protect the interests of national and local trade unions failed to represent the workers, leading to the 2010 crackdowns. However, these strikes were centered around foreign companies.
Unemployment in the United States discusses the causes and measures of U.S. unemployment and strategies for reducing it. Job creation and unemployment are affected by factors such as economic conditions, global competition, education, automation, and demographics. These factors can affect the number of workers, the duration of unemployment, and wage levels.
Unemployment benefits in Spain are contributory and non-contributory. They are part of social security system in Spain and are managed by the State Public Employment Service (SEPE). Employers and employees contribute to the unemployment contingency fund and if an unemployed person fulfills certain criteria they can claim an allowance which is based on the time they have contributed and their average wage. A non-contributory benefit is also available to those who no longer receive a contributory benefit dependent on a maximum level of income.
Youth unemployment is a special case of unemployment with the youth, here being those between 15 and 24 years old.
As the unemployed according to the art. 2 of the Ukrainian Law on Employment of Population are qualified citizens capable of work and of employable age, who, due to lack of a job, do not have any income or other earnings laid down by the law and are registered in the State Employment Center as looking for work, ready and able to start working. This definition also includes persons with disabilities who have not attained retirement age and are registered as seeking employment.
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Youth unemployment in Italy discusses the statistics, trends, causes and consequences of unemployment among young Italians. Italy displays one of the highest rates of youth unemployment among the 35 member countries of the Organization of Economic Co-Operation and Development (OECD). The Italian youth unemployment rate started raising dramatically since the 2008 financial crisis reaching its peak of 42.67% in 2014. In 2017, among the EU member states, the youth unemployment rate of Italy (35.1%) was exceeded by only Spain and Greece. The Italian youth unemployment rate was more than the double of the total EU average rate of 16.7% in 2017. While youth unemployment is extremely high compared to EU standards, the Italian total unemployment rate (11.1%) is closer to EU average (7.4%).
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Unemployment has been a serious social issue in China in recent years, regarding both an increase in quantity and an unequal impact on different social regions. The influence of foreign investment in China has greatly increased since the Open Door Policy was implemented in the early 1980s. The relationship between foreign-funded enterprises and urban labor market development is dual. Opponents influence the shape of labor-market regulation; however, foreign-funded enterprises have also become a major source of demand for urban and rural areas migrant workers. Demographic factors also affect unemployment in China, such as age and sex. The position of women in the labor market has been deteriorating, with a decline in labor force participation rate, rising unemployment, increased work intensity and a widening gender pay gap.
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This article was adapted from the equivalent Spanish-language Wikipedia article on April 20, 2013.