26286
Spain’s Growth Masks Lingering Crisis of Jobs
World Economy

Spain’s Growth Masks Lingering Crisis of Jobs

Data shows Spain’s economy recovering, but tell that to Javier Pichel: this summer he packed and left for the only place he could find a decent job–Germany.
Millions of Spaniards are scraping by on benefits, family handouts or working cash-in-hand as they wait for the apparent economic rebound to create the hundreds of thousands of jobs the government is promising, AFP reported.
Experts say that these jobs are being created–but that the problem is many of them only last a few days.
Since leaving school, 22-year-old Pichel from the northwestern Galicia region has racked up training certificates in finance and business, but has received no decent job offers in Spain.
“You can get a contract for three weeks or three months. You’re happy, but you quickly realize that there is no job security,” he said.
Spain’s government is forecasting the economy will grow by 3.3% this year, one of the strongest rates in the eurozone.
Prime Minister Mariano Rajoy in 2012 passed reforms making it easier for firms to hire and fire as part of his austerity reforms. Now he has promised a million jobs would be created over the 2014-2015 period.
Pichel and others his age find that hard to imagine. Opposition parties and labor unions dispute the diagnosis given by the conservative government, which is preparing to fight for re-election in December.

 Jobless Rate High
Spain’s unemployment rate remains extremely high at more than 22 percent. One in every two eligible workers under the age of 25 is out of work.
“Every month in Spain 1.5 million contracts are signed. That’s 18 million a year. So what’s going on? These are contracts for just a day’s or a week’s work,” said Manuel Lago, an economist in the major union CCOO.
“Employment in Spain is very seasonal. Jobs start getting created shortly before Easter and the unemployment rate goes down all summer” before ticking back up in August.
Anna Laborda of ESADE business school in Barcelona agrees that the jobs being created in Spain are “very unstable” ones.
Labor ministry figures show that one quarter of all contracts signed in the first half of this year were for a week’s work or less.
Spain suffered two recessions after its housing bubble burst in 2008. It returned to growth in mid-2013. Many of the millions of immigrants who were drawn to Spain during the prior boom years were driven away by the crisis.
Young people with qualifications and languages have followed, since all Spain seems to offer is “seasonal or unsteady jobs”, Laborda added.

Short URL : https://goo.gl/sG4WPP
  1. https://goo.gl/Jx5SEP
  • https://goo.gl/kjohAR
  • https://goo.gl/yWN6Dt
  • https://goo.gl/a1UeqC
  • https://goo.gl/hHPNTb

You can also read ...

China Warned of Ballooning SOEs
Former chief of the World Bank Robert Zoellick cautioned China...
Business confidence fell to its lowest level since August 2013 and around 7% of companies expected a contraction.
According to data from the International Monetary Fund in...
Shrinking unemployment in the US, Japan and the eurozone finally forces companies  to lift wages to retain and attract staff.
Workers in the world's richest countries are getting their...
New Zealand Q2 GDP Growth Picking Up
New Zealand’s economic growth is expected to have accelerated...
Saudi Sovereign Fund Secures $11 Billion Loan
Saudi Arabia's sovereign wealth fund said Monday it had...
Lira Eases Against Dollar
Turkey’s lira weakened against the dollar on Monday as...
By 2025 more than half of all current workplace tasks  will be performed by machines.
Robots will handle 52% of current work tasks by 2025, almost...
Myanmar Businesses Want Lower Taxes
Myanmar businesses are urging the government to lower the...

Trending

Googleplus