We Are Excluded

STUDY
We Are Excluded
Current country studies by the Friedrich-Ebert-Stiftung analyse youth unemployment in Europe
A detailed look at the background to this problem with examples from Spain, Germany, Italy, France and Poland
n The debt and economic crisis may be increasing youth unemployment in many European countries, but it is not its structural cause. The current academic country studies by the Friedrich-Ebert-Stiftung (FES) from 12 European countries show that a growing proportion of young people in the EU have no longer been successfully making a smooth transition from school to permanent, paid employment. n Instead of quickly gaining a lasting foothold in the job market, young people throughout Europe are wasting valuable years in an unsatisfactory situation of bouncing backwards and forwards between education, unemployment and precarious jobs, and this does not enable them to make definite life and career plans. n It is a mass phenomenon. Instead of a permanent job, many 15 to 24-year-olds are only finding precarious part-time or temporary jobs or posts with fixed-term contracts in the increasingly deregulated job markets of the EU. They are therefore the first to lose their jobs in periods of economic volatility. n The current economic crisis is also hitting them the hardest. In the countries of the EU, an average of 22 per cent of young people are unemployed, approximately twice the average figure for adults. A proportion of Europes youth has therefore gradually become a lost generation, which makes it even harder for this generation to embark upon careers.
YOUTH UNEMPLOYMENT IN EUROPE
In times of crisis, the policy of last in, first out is applied

One of the crudest examples of how in the job market it is the young people who are hit the hardest by any economic crises can currently be seen in Spain. There more than half (52 per cent) of young workers under the age of 25 were without a job in the first half of 2012. After Greece, Spain has the second highest youth unemployment in the EU, states the rapporteur who compiled the FES country report on Spain, Fernando Rocha Snchez. Spaniards aged between 16 and 24 are twice as likely to be unemployed as their older compatriots. Nearly two million of them lost their jobs between 2008 and 2012. One reason for this is that young workers are especially likely to work in low or moderately skilled jobs in industries that were hit particularly hard by the crisis in Spain: construction, production and retail. 66 per cent of employees who recently lost their jobs in these three fields were aged between 16 and 29, states Fernando Rocha Snchez.1
young people aged between 16 and 24 since 2008 had fixed-term contracts. At the start of the crisis, as many as 80 per cent of the jobs lost by people under the age of 24 had fixed-term contracts. The current conservative government is attempting to tackle unemployment through yet more deregulation of employment. However, the previous attempts at flexibilisation through job market reforms in the last few decades never resulted in more permanent jobs but only in more precarious jobs, reports Fernando Rocha Snchez. In view of the debt and economic crisis in particular, in 2012 the government again impinged upon workers rights, especially those of young workers, when it weakened participation rights and the rules on protection against dismissal. The government also changed the conditions for training contracts in such a way that it is now feared that trainees are often not introduced to a career but are merely exploited as cheap labour, says Snchez.
Condemned to doing nothing right at the start of their professional lives: Spains ni-ni generation The crisis increases youth unemployment but its roots lie in precarious jobs
The crisis has had a dramatic impact on youth unemployment in Spain. However, just one look at the background to the situation there and in many other EU countries and it becomes clear that the root causes of the weak presence of young people in the job market lie elsewhere. The reason often lies in reforms of the job market, through which the state allows constant deregulation of working conditions. This deregulation made it increasingly more difficult for people entering the job market to find a secure, fairly paid and long-term job. Precarious employment is now increasingly often the rule for young people in the first few years of their working lives. In their search for a secure job, an increasing proportion are killing time in long, unpaid internships, bogus self-employment, undeclared employment and very low paid jobs far below their qualification levels. In particular, the percentage of young people who have jobs with fixed-term contracts is extremely high in Spain. And it was precisely these jobs that employers cut in the crisis or did not extend. 57 per cent of the jobs lost by
1. You can find his complete study at http://www.fes.de/lnk/youthunemployment.
Across Europe, it is young men who are losing their jobs particularly frequently at present. Before the crisis, their rate of unemployment was significantly lower than that for young women. In Spain too, more young men are unemployed than young women and between 40 per cent and 50 per cent of them remain unemployed for one year or more. There is a particular risk of poverty and social exclusion for one group of young unemployed people: those who are without work and are not bridging this period in either training or education but are literally doing nothing. In 2012, 19 per cent of unemployed people under the age of 24 and as many as 27 per cent of unemployed 25 to 29-year-olds belonged to this ni-ni generation (ni trabajan, ni estudian or, in English, neither working nor in education or training).
There is too little system to the German transitional system

By contrast, in Germany young people who are unable to find a place in education or a job on leaving school end up on the street much less often. In the transitional system, as it is known, they are offered a wide range of publicly subsidised programmes and training courses,
Unemployment EU 27
25 Rate of unemployment in per cent
20
Youth unemployment 21,4
15
10
Generel unemployment 21,4
0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: http://appsso.eurostat.ec.europa.eu/nui/setupModifyTableLayout.do.
which are intended to improve their social, school and vocational qualifications. In 2011, the percentage of young school leavers who did not directly find a training place in Germany but ended up in programmes of the transitional system, stood at nearly 30 per cent, says the author of the FES country report for Germany, Bettina Kohlrausch.2 These young people do not appear in the unemployment statistics and are not technically considered to be unemployed. However, as to whether all the measures of the transitional system actually help them to enter the job market, this is a matter of dispute among experts. Although at 9 per cent youth unemployment in Germany is only half that in the majority of European countries, significant difficulties have been arising in this country over a number of years when it comes to integrating young workers into the job market. Since as early as 1994, youth unemployment has regularly been higher than adult unemployment. On the one hand, it is true that the dual system of vocational education and train2. You can download her complete report at http://www.fes.de/lnk/youthunemployment.
ing in which employers and vocational training schools jointly ensure the qualification of a trainee is still having a very stabilising effect on the job market. As Kohlrausch reports, a majority of those managing to get onto a dual education and training programme shave a good chance of finding a regular job afterwards. However, on the other hand, in 2011 this was only possible for just over half of school leavers. By contrast, nearly every second school leaver did not manage to find a vocational training place in the dual system straight after leaving school. For them, their working life began in vocational training schools or in training courses of the transitional system
Access to the dual system is the basis for a good start to a career
The transitional system, which is supported by job centres, vocational training schools and private providers, is criticised for the fact that it does not provide a guaranteed transition to the job market for young people and, in particular, that it is not very effective. Often participants in the programmes are not able to improve their social and professional qualifications according to their deficits and
needs but pass through a number of standard training courses that do not build on one another and help them little or not at all in their search for a vocational training place. A large number of the programmes offered in the transitional system are therefore regarded by critics more as futile way of killing time than as useful measures to increase employment. On the other hand, representatives of employers criticise the fact that school leavers often lack the personal maturity and basic knowledge for a training place in the dual system and they therefore support the general preparatory training courses. In order to ensure a smooth transition to working life, access to the dual system is the decisive factor in Germany. Young men, young people with a poor school education and immigrants are more often than average excluded. It is above all in strengthening this system and not in expanding the transitional system that action needs to be taken to combat youth unemployment, writes Bettina Kohlrausch. The school system must therefore prepare young people in a more targeted way for being able to carve out a regular path to a training place. According to Kohlrausch, it is also necessary to offer more qualification modules in the transitional system that young people could use to begin the dual training system. Political discussion is also focusing on a training-place-guarantee for young people who wish to eliminate possible shortcomings in terms of their readiness for training through preparatory training measures.
in Italys job market than in scarcely any other country. Or it is a case of not even being able to get in in the first place. More than 60 per cent of unemployed people in Italy belong to the category of individuals who are entering the job market. There is also a high proportion of temporary, atypical employment in Italy. As in other Mediterranean countries such as France, Greece, Portugal and Spain, in Italy tooan inflexible school and education system is blamed for the long transition to job independence. It is thought that this system has been relying too heavily and for too long on theoretical knowledge, with practical professional experience not playing a part here, unlike in the dual training system in Germany. However, in financial terms it is not the state that supports the long professional orientation phase in Italy, but the family, says Francesco Pastore.
Reforms bring a more practical approach to school education

In previous years, reforms in Italy have primarily addressed the deregulation of employment by relaxing the rules on protection against dismissal and allowing atypical employment. However, more recent reforms were aimingatimproveing school education and better matching actual labour market requirements. Mario Montis government reformed the school and education system in 2011, ensured more practical relevance and announced further measures in this vein. A reform of the job market in 2012 set out to increase costs for temporary employment and reduce the costs for a permanent job through further relaxing of therules on protection against dismissal, for example. One of the few groups of young people in Italy whose rate of unemployment has fallen is those with a university degree. However, Italy is at the bottom of the table in Europe when it comes to the number of university graduates. This is surprising given the fact that 75 per cent of young people in Italy have a post-secondary school diploma entitling them to pursue further studies. Nevertheless, only a small proportion manage to obtain a degree, more than half drop out of university; the duration of studies is very long. Those who persevere may have good chances of finding a job, but more often than average they initially take a job for which they are overqualified and underpaid.
In Italy, the transition from school to work is one of the longest in the world
While in Germany, school education and vocational training go hand in hand in many places, the two have been separate worlds in Italy for a long time. There the transition from school to a permanent job has been one of the most difficult and longest in the world for several decades. This phase lasts a good 50months in Italy, nearly twice as long as the European average, writes FES rapporteur Francesco Pastore.3 The unemployment rate among Italys young people rose by 24 per cent in 2007 to over 39 per cent in the first half of 2012, and it was three times as high in the south of Italy as in central or northern Italy. The phrase last in, first out is also true
3. You can read his complete country report on Italy here: http://www. fes.de/lnk/youthunemployment.
France: Even a brilliant formal education does not open up many career prospects
Across all EU countries, young people from a migration background and young people with a poor school education are the groups that are particularly disadvantaged in the job market. However, even a brilliant education often does not guarantee young job starters any career prospects. Example from France: There young people have a considerably higher level of formal education than their parents generation, but like Italys university graduates due to a lack of other opportunities they often work far below their qualification levels in precarious jobs for little money. Unfortunately, the social ladder on which young people are climbing higher and higher is gradually sinking into the ground, is how the rapporteur of the FES France study, Florence Lefresne, describes the situation.4 Germanys neighbour also has a deep-rooted structural problem when it comes to integrating its young workers into the job market. In the last 30 years, the rate of unemployment among under 25-year-olds in France has never fallen below 15 per cent, but it has usually been above 20 per cent. In December 2011, nearly 24 per cent of young people were unemployed whilst the general rate of unemployment was well below half that. In France too, the percentage of young people in fixedterm, precarious and poorly paid jobs was and remains higher than average, which is why they become unemployed more quickly during crises. Overall, it is apparent that in France each generation finds fewer stable jobs than the generation before them. The various French governments have long been aware of the problem and have tried various approaches to solve it. As a result, in 2010 a quarter of young workers benefitted from statesubsidised employment contracts.
first and work later, writes Florence Lefresne. The situation in the school system presents a mixed picture. While a very high number of young people predominantly girls are gaining high level diplomas, at the same time, each year 130,000 young people (some 17 per cent) are leaving school without a diploma. This last group was hit particularly hard by the cutting of 50,000 teaching posts that the French school system was forced to bear under the Sarkozy government and which Francois Hollande now intends to counteract with new appointments, says Lefresne. Whilst a good diploma is still amajor prereqisite for finding a good job, it is providing school leavers with increasingly less protection from unemployment or a poorly paid job. In 2010, three years after embarking on their careers young French workers were earning an average of EUR 1,200 and a quarter of them were even earning less than EUR 1,000. In particular, young women benefit little from the fact that they have significantly better school diplomas than men. They earn a good 24 per cent less than their male colleagues. French governments have tried to make employing young workers more attractive to employers by allowing special contract conditions and announcing state support and reductions in social contribution requirements. Small firms with less than ten employees particularly take advantage of this. Nevertheless, a fixed-term or part-time job is still the main way into the job market for young people. Politicians ambitious goal of creating more education opportunities was not successful and this was due in particular to the economic crisis. The number of trainees fell between 2007 and 2011 from 418,000 to 390,000. State support for the employment of young people has not yet had any lasting impact on youth unemployment, which remains 2 to 2.5 times as high as the general rate of unemployment. Nevertheless, the Holland government is focusing on this instrument and is promising employers relief where social security contributions and taxes are concerned in return for employing young workers. However, Florence Lefresne recommends that this should focus on the severely disadvantaged groups of young people and shouldbe accompanied by clear demands upon the employers benefitting from the scheme. During the crisis, the author argues, it is of particular importance to support new professional standards that aim to improve both the quality and security of employment.
Each year, 130,000 young people leave the French school system without a diploma
In contrast to countries such as Germany, Austria, the Netherlands or Denmark, France does not have a broadbased vocational training system that alternates between practice and theory. Young people in France learn
4. You can find her complete analysis here: http://www.fes.de/lnk/youthunemployment.
Poland: Working poor with a first-class education

Like France, Poland also has a young generation with a very good level of formal education. 80 per cent of school leavers have a diploma entitling them to study at university. But there too, 15 to 24-year-olds have for some years been experiencing great difficulties in becoming integrated into the job market. Both youth unemployment and the proportion of precarious jobs and jobs that do not provide a livelihood and result in poverty is increasing in Poland, writes FES country rapporteur Michal Polakowski.5 Since 2008, the economic crisis has also had an impact in Poland, albeit not as dramatically as in the southern European countries. Youth unemployment currently stands at nearly 28 per cent but, at the beginning of the 2000s, it reached entirely different proportions with a rate of well over 40 per cent. Nearly three million jobs were lost between 1990 and 2003, mainly in farming and industry. From 2004 onwards, the Polish economy recovered slowly; the rate of unemployment among young people fell to 17 per cent in 2008. But since then, the rate has risen again and precarious jobs have increased dramatically.
Another feature of note in the Polish job market is special employment contracts under the Civil Code (Civil Code Contracts) with below-average social security arrangements. In contrast to the contracts under employment law, these contracts do not cover risks in terms of illness, pregnancy or unemployment, nor are there any regulations concerning minimum salary or specific guidelines on working hours. It is primarily young workers who are concluding contracts on the basis of this template. A high percentage of young Poles are seeking jobs abroad. In 2011, approx. two million people emigrated from Poland, mainly to the UK, Germany and the USA. Half of them were aged between 20 and 29 years old. Poland therefore not only has to cope with a brain drain, but also with what could be termed a brain waste, a waste of knowledge. This is because among the young emigrants are many with a high level of education, butwho often work far below their qualification levels when they emigrate. Only one in ten migrants with a university degree finds a job that matches their qualifications. However, due to the surplus of university graduates as a result of Polands education boom, the loss of skilled workers to emigration remains far more painful for the labour market.
66 per cent of Polish employment contracts are fixed-term contracts

Short-term contracts are particularly widespread in Poland. In 2011, the proportion of fixed-term employment reached 66 per cent. It is primarily young people with a low level of school qualifications who are working under such contractual conditions. Fixed-term contracts are particularly common in the service industry and in retail where they represent over 40 per cent of employment contracts. These jobs are generally not springboards to regular employment. They are instead a trap and a path to greater job insecurity, as a fixed-term contract is generally followed by further fixed-term contracts, reports Michal Polakowski. As far as in-depth vocational training is concerned, it is only a minority of employers that are active here. In 2010, just 23 per cent of Polish companies were collaborating with schools or centres for practical training.
5. You can download his complete analysis on the situation in Poland here: http://www.fes.de/lnk/youthunemployment.
First sign of an active job market policy to combat youth unemployment in Poland
To date, Polish job market policy has not been very active when it comes to supporting unemployed people. Only a very small number of young Poles receive unemployment benefit as many never make it to the required minimum period of employment of 12 monthswithin an 18-month period. One instrument that is intended to finance job market measures is the Fundusz Pracy, a fund into which 2.45 per cent of the gross income of all employees is paid. It is full to bursting and could be used for active job market policy. However, during the crisis, as a cost-saving measure, the government cut expenditure from this fund by half. Michal Polakowski recommends that this decision be reversed quickly. According to him, more state-financed training measures are needed in order to strengthen the qualifications of young jobseekers in Poland and help them to enter the job market. In 2012, the government took a first step in this direction
with a systematic programme offering young unemployed people vouchers for vocational training courses and mobility allowances.
A pan-European problem that requires country-specific solutions

Youth unemployment is a pan-European problem. Nevertheless, country-specific solutions have to be found, suggest the FES country reports. They provide information about sensible approaches to this. The FES rapporteurs dont see further deregulation of working conditions, which some governments wish to push through during the crisis, as a solution but rather as a part of the problem. It has already become evident throughout Europe that young people are being forced into precarious jobs and are becoming the flexible reaction mass in the job market as a result at the expense of their future prospects. It is the young who are suffering far more greatly from the current impact of the crisis than all the other workers. The general tenor of these studies is that solution strategies must therefore set different priorities. There seems to be a Europe-wide consensus that education systems need to be reformed and vocational training systems need to prepare participants for the job market in a more systematic way. The precise ways of achieving this may differ in the individual countries, be a matter of dispute and most certainly require country-specific priority setting. However, a large number of the studies also suggest that job market policy should not just be restricted to improving the supply side. Country-specific elements of an active labour market policy must be developed as a priority. Within the EU countries, there is a broad, albeit heterogeneous, range of experience for this. The FES Germany-study by SOFI-Gttingen provides clear indications of how the transitional system (from school to work) could be improved in Germany. However, at least for those countries where demand for young workers has fallen below the critical margin, finding ways of creating jobs that go far beyond this will become an increasingly urgent matter. Above all, the conclusion of the country reports is the following: The countries of the EU need to quickly address this protracted problem and not by simply confining the search for solutions to the supply side of the labour market. Their future is at stake.
Europes Lost Generation

The political approaches are as varied as the backgrounds to youth unemployment in the European countries, emphasises Hans Dietrich, who provides a summary of the situation in the EU.6 While in countries such as Greece, Italy and Spain unemployment is at a record level, in countries such as Germany, Austria, the Netherlands, Luxembourg and Malta it has fallen since 2007 or remained stable. Extreme differences can be seen within the individual countries, where youth unemployment varies from region to region. Although it takes different forms, the problem of a lost generation of young people that has serious problems making the transition from school to working life is one that has been apparent for several years throughout the EU. Overall, young people are affected much more quickly and much more severely by any economic crises than adults.
Social exclusion: adult life does not begin

For many young Europeans, a direct path from school into a secure job is no longer the rule. Instead temporary and scattered episodes of employment are becoming increasingly common. Young people are constantly bouncing backwards and forwards between education, training, precarious employment, unemployment and internships. Young people therefore do not develop a clear picture of what type of job and what level of income they can aspire to, says Hans Dietrich. Their dependence on financial support from their family, with whom they continue to live for a long time as grown-up children, also prevents them from being mobile in their search for a job. Young people are more likely to feel socially excluded by their unemployed status than just poor. Life does not begin, is how Dietrich puts it. Not being part of the job market in your younger years has a greater psychological impact than being unemployed as an adult.
6. His FES report Youth unemployment in Europe can be downloaded from http://www.fes.de/themen/jugend/publikationen_jugendarbeitslosigkeit.php.
Unemployment in 2011
Youth unemployment 50 45 Unemployment total
Rate of unemployment in per cent
40 35 30 25 20 15 10 5 0 Czech Republic Germany Bulgaria Portugal Denmark Sweden Norway Estonia Poland France Greece Slovakia Spain Italy
Countries
Source: http://appsso.eurostat.ec.europa.eu/nui/setupModifyTableLayout.do.
The following studies are being prepared: Europe, Hans Dietrich; Germany, Bettina Kohlrausch; France, Florence Lefresne; Italy, Francesco Pastore; Bulgaria, Yordan Dimitrov; Scandinavia, Jonas Olson und Eskil Wadensj; Portugal, Maria da Paz Campos Lima; Greece, Annie Tubadji; Estonia, Marge Unt; Poland, Michal Polakowski; Spain, Fernando Rocha; Czech Republic, Pavel Janicko; Slovakia, Michal Palenik The FES studies can all be viewed via the following link: http://www.fes.de/lnk/youthunemplayment
Imprint Friedrich-Ebert-Stiftung | Dept. for Center and Eastern Europe Hiroshimastr. 28 | 10785 Berlin | Germany Responsible: Jrg Bergstermann, Coordinator for Trade Union Programs in Europe and North America Phone: ++49-30-269-35-7744 | Fax: ++49-30-269-35-9250 http://www.fes.de/international/moe To order publications: info.moe@fes.de
The views expressed in this publication are not necessarily those of the Friedrich Ebert Stiftung.
ISBN 978-3-86498-405-1
STUDY
Youth Unemployment in Spain

Situation and Policy Recommendations
FERNANDO ROCHA SNCHEZ November 2012
The high level of precarious work is the main cause of the greater vulnerability of youth employment to the crisis in Spain, although within the framework of different situations that impact groups of young people with specific characteristics and needs. The reforms aimed at deregulating the labour market will not favour a net increase in employment, but will lead to more precarious work among young people. Youth employment policies should be based on identifying the different target groups more effectively, placing immediate focus on young people with the lowest levels of qualifications and promoting decent work.
FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN
Content
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. Youth Unemployment in Spain: A Diagnosis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Note on Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Evolution of Youth Unemployment (20002012) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 Evolution of Youth Employment in Times of Crisis (20082012). . . . . . . . . . . . . . . . 1.4 Profile of Youth Unemployment (2012) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 3 5 9
2. Labour Market Reforms: An Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3. The Challenge of Youth Employment in Spain: Policy Pointers . . . . . . . . . . . . . . . . 13 3.1 Short-term Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3.2 Medium-term Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 4. Six Final Points for Reflection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Statistical Annex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Introduction
The Great Recession has had a significant social impact in Spain, where the effects on the labour market caused by the change in the economic cycle have been more profound than in many other European countries. Almost three million jobs have been lost between 2008 and 2012, which represents a year-on-year decline of 15 per cent. As a result, the level of employment has fallen by 10 per cent, to a rate of 58 per cent, while unemployment has risen dramatically to 5.6 million and a rate of 24.6 per cent, the highest in the European Union (EU).1 A question of particular relevance is the fact that the significant decline in employment has not affected all age groups in the same way, with young people being particularly hard hit. This has also been the case in the rest of Europe, although not to such a pronounced degree, thereby confirming the general principle of the last person hired is the first to be laid off. The result is a number of 922,000 young unemployed (below 25 years of age) in 2012 and a youth unemployment rate of 52 per cent, the second highest in the EU, after Greece.2 The main aim of this report is to study the phenomenon of youth unemployment in Spain by examining its characteristics and causes, and suggesting possible measures to tackle it. To this end, the content is structured as follows: Section 1 includes a diagnosis of youth unemployment in Spain, and the main factors responsible for the greater vulnerability of young people in the current economic crisis. Section 2 offers a general assessment of the labour market reforms approved in Spain since the beginning of the crisis. Section 3 focuses on a series of possible measures aimed at encouraging the creation of jobs for young people. Finally, the report includes a statistical annex, with data on youth unemployment for the period 20002012, which is not fully reflected in the text.
1. Youth Unemployment in Spain: A Diagnosis

1.1 Note on Methodology
The term young people is not standardised and its meaning varies significantly in accordance with the institutional, economic, social and cultural context of each country. Regarding the labour market, in Spain the concept young people conventionally refers to those aged between 16 and 29, both in terms of statistical analysis3 and employment policies. The report takes this age group as an overall reference, but differentiates two sub-groups: 1624 and 2529.4 The main statistical data source used in this report is the Labour Force Survey (Encuesta de Poblacin Activa, EPA), compiled by the National Institute for Statistics (Instituto Nacional de Estadstica, INE). The reference data are taken from the second quarter of each year, as this period is less affected by seasonal factors, except in the case of 2012. This information is complemented with Eurostat data for comparisons with other European countries. The analysis is structured around three sections: first, we look at the evolution of youth unemployment between 2000 and 2012, highlighting its connection with the economic cycle and differences from the dynamics of adult unemployment. This is followed by a more detailed analysis of the changes in the employment of young people during 2008 to 2012, outlining the main factors behind their greater vulnerability to the crisis. Finally, we address the main characteristics of unemployment in young people at the end of this period.
1.2 Evolution of Youth Unemployment (20002012)

The evolution of unemployment among people under 25 in Spain since the beginning of the decade follows similar patterns to those of the European Union (EU) as a whole,
3. Compulsory education in Spain continues until the age of 16, so people younger than this are not included in employment statistics.
1. Eurostat (2012, first quarter), data 1564 years. 2. Eurostat (2012, first quarter).
4. This group is referred to in the EU as young adults. European Commission: Recent Developments in the EU-27 Labour Markets for Young People Aged 1529 (September 2010).
although there are differences in terms of the annual unemployment rate which is higher in Spain and has seen a significant increase since 2008, coinciding with the onset of the economic crisis (Figure 1). A similar pattern can be seen when we compare the situation of young adults (2529 years old), although unemployment figures are significantly lower than those for the younger group.
When focusing on Spain, it is important to analyse the nature of unemployment in young people by comparing it to that of the adult population. In order to do this, we take the ratio between the different rates of unemployment of young people and adults as a reference indicator.5 The evolution of these rates during the specified period permits us to highlight, first, the fact that the level of unemployment among people aged between 16 and 24 years is twice as high as that of the adult population (figures for which are close to the European average). On the other hand, the ratio between both rates dropped between 2008 and 2012, in the context of the economic crisis (Figure 2).
Figure 1: Youth unemployment rates in the EU27 and Spain, by age group, 20002012 (%)
1524 years 60 50 40 30 20 10 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Figure 2: Ratio between unemployment rates among young people and adults in Spain, 20002012
3,0 2,5 2,0 1,5 1,0 1524 years
60 50 40
0,5 0,0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Ratio 1624/2564 30 20 10 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Ratio 2529/3064
Source: EPA, INE (second quarters, except 2012 = first quarter).
EU27 Spain
The decline of the ratio between youth and adult unemployment is a trend which has also been observed in other European countries and has led some commentators to argue that both groups have been affected in a similar way during the present crisis.
Source: Eurostat, authors calculations (second quarters, except 2012 April data).
5. With the aim of facilitating a comparison with the analysis in other European countries, two types of ratio have been calculated. On the one hand, the unemployment ratio between the 1624 and the 2564 age groups, and on the other the ratio between the 2529 and 3064 age groups.
An in-depth analysis, however, reveals that this trend would be better explained by other factors; particularly by the differing evolution of labour force activity in Spain, which, since the beginning of the crisis, has declined in the case of young people, and increased among adults. If we analyse the evolution of the 25 to 29 age group, we observe two distinctive features: on the one hand, a lower rate, with a ratio of 1.5 between both rates of unemployment; and slight growth since the beginning of the crisis, which would also be due to the increase of the labour force activity rate in this section of the population. Finally, another interesting aspect of the long-term analysis is the connection between the evolution of the economic cycle measured by the annual variation of real GDP and the rate of unemployment among young people.
An examination of the data reveals that Spains results coincide with those obtained by several international studies and reports, in two respects. On the one hand, they show the sensitivity of the youth unemployment rate to the variations in the economic cycle, especially during this time of crisis. On the other, they reveal that the negative correlation is greater than that of the adult population, particularly in the case of the youngest group (Figure 3). In short, empirical evidence confirms that the evolution of unemployment in young people over the past decade has followed a similar trend to that of the EU average. However, the analysis also clearly shows that the change in the economic cycle in Spain has led to growth in unemployment among young people, which is much more intense than that of other European countries. The main question is therefore to identify the specific causes which make the employment situation of young people more volatile in Spain. The answer to this requires a more detailed analysis of the evolution of youth unemployment during the crisis.
Figure 3: Annual variation of real GDP and unemployment rates by age groups in Spain, 20002012 (%)
60 50 40 30 20 10 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1.3 Evolution of Youth Employment in Times of Crisis (20082012)6

Between 2008 and 2012 Spain has seen a decline of 1.9 million young people in employment, a figure which represents 67 per cent of all those who have lost their jobs during this period. This tendency can be seen in both age groups, but it is the youngest group 16 to 24 years which has been worse affected (Table 1).
10 Real GDP growth YUER (1624) YUER (2529) AUER (3064)
Table 1: Employment by age group in Spain, 2008 and 2012 ('000)

Age group 1624 2529 2008 1,849.9 2,773.3 15,629.7 20,252.9 2012 850.5 1,789.8 14,641.5 17,281.8 Dif 999.4 983.5 988.2 2,971.1 % 54.0 35.5 6.3 14.7
Notes: Corr YUER-GDP growth (1624) = 0,7947. Corr YUERGDP growth (2564) = 0.7520. Corr YUER-GDP growth (2529) = 0,7280. Corr YUER-GDP growth (3064) =0.7615 Source: Eurostat (GDP, 2012 estimated) and EPA, authors calculations.
3064 Total
Source: EPA, INE (first quarter).
6. In this section, the data refer to the first quarters of 2008 and 2012.
As can be seen, the effect of the crisis has been a steep decline in the number of young people working, and a rapid increase in unemployment, above all in the youngest age group 16 to 24 years for which unemployment figures rose to 52 per cent in 2012 (Table 2). Nevertheless, in certain respects it is more interesting to observe the evolution of the situation for those between 25 and 29 since this group shares many of the characteristics of the adult population. A rise in the unemployment rate of 20 per cent over a four-year period among this group is particularly worrying.
Gender analysis of the sectoral evolution of employment reveals some differences between men and women. It is particularly significant among men in the construction industry, accounting for 41 per cent of the jobs lost during this period by both age groups. Most of the jobs lost by women come from manufacturing, retail sales and the hotel and catering industry. On the other hand, there is a high concentration of young people in occupations which have been particularly badly affected by the crisis and/or have medium to low qualification requirements (Table 4). Thus, four occupations account for 76 per cent of the jobs lost by young people aged 16 to 24 years during this period. Of these, one requires medium-high qualification levels: Craft and related trade workers; two have medium to low qualification requirements: Service and sale workers and Clerical support workers; and one has low qualification requirements: Elementary occupations. Similarly, in the 25 to 29 group there is a significant presence of technicians and service or support workers and the number of jobs which have been lost is also significant. If we itemise the differences by gender, we find differences related to the sectoral composition of employment, with a greater relative significance of occupations connected with the construction industry in the case of men, and services among women. However, the most influential factor with regard to the vulnerability of young people to the crisis in Spain is the high level of precarious work, which is such a key structural characteristic of the labour market for this group of the population that it could almost be said to be endemic. An important aspect of this situation is the fact that the number of temporary jobs has remained high over the years. This has facilitated the incorporation into the labour market of young people during periods of economic expansion, but has also led to a greater degree of vulnerability, since temporary jobs have suffered the worst effects of the crisis (particularly during the first year). In 2008, 59 per cent of the 16 to 24 age group and 41.8 per cent of the 25 to 29 age group were employed
Table 2: Labour market indicators in Spain, by age group, 2008 and 2012 (%)
1624 years Activity rate Employment rate Unemployment rate 2529 years Activity rate Employment rate Unemployment rate 3064 years Activity rate Employment rate Unemployment rate Source: EPA, INE (first quarter). 2008 50.9 40.1 21.3 2008 86.1 76.4 11.3 2008 75.6 69.7 7.8 2012 42.2 20.3 52.0 2012 86.4 59.5 31.2 2012 79.3 62.6 21.0 Dif 8.7 19.8 30.7 Dif 0.3 16.9 19.9 Dif 3.7 7.1 13.3
An in-depth analysis allows us to identify the key factors in the greater vulnerability of youth employment to the crisis: (1) There are three factors related to the characteristics of the jobs done by young people during the period of expansion which took place in the Spanish economy from the mid-1990s until 2007.7 On the one hand, there is the high concentration of young people in sectors which have been particularly badly affected by the crisis, such as construction, manufacturing, and retail sales. These three sectors accounted for 66 per cent of the jobs lost by young people in the two age groups between 2008 and 2012 (Table 3).
7. Between 1996 and 2007, 7.5 million jobs were created in Spain, of which 1.5 million 20 per cent of the total were taken up by young people (16 to 29 years).
Table 3: Youth employment in Spain, by age group and economic activity, 2008 and 2012 (1000)
2008 Economic activity 1624 Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity, gas, steam and air conditioning supply Water supply; sewerage, waste management and remediation activities Construction Wholesale and retail trade; repair of motor vehicles and motorcycles Transportation and storage Accommodation and food service activities Information and communication Financial and insurance activities Real estate activities Professional, scientific and technical activities Administrative and support service activities Public administration and defence; compulsory social security Education Human health and social work activities Arts, entertainment and recreation Other service activities Activities of households as employers; Activities of extraterritorial organisations and bodies TOTAL Source: EPA, INE (first quarter). 64.9 4.6 280.8 5.0 6.6 291.4 417.2 56.0 189.9 47.6 20.7 5.1 58.7 68.3 53.8 54.6 72.1 45.3 53.1 54.2 0.1 1,849.9 2529 81.4 6.8 401.3 12.6 15.0 415.6 475.4 110.8 203.5 99.3 82.2 14.3 148.4 114.7 96.4 132.7 142.5 41.3 72.2 106.8 0.0 2,773.3 1624 45.5 0.8 80.0 7.2 3.0 49.7 203.6 27.5 113.9 22.7 9.1 1.4 21.3 31.5 32.1 50.4 54.4 33.3 32.8 30.3 0.0 850.5 2529 63.1 3.7 208.0 11.1 9.0 107.5 328.9 60.9 170.1 89.4 37.6 5.3 117.2 74.0 88.2 116.9 143.2 34.1 55.3 65.6 0.9 1,789.8 2012
in temporary jobs. In the four following years, 57 per cent of paid jobs lost by 16 to 24 year olds were temporary, whereas for those between 25 and 29 the figure was 45 per cent.8 The significant destruction of temporary jobs brought about by the present crisis does not seem to support the conventional assumptions about the rigidity of the Spanish labour market. On the contrary, its evolution during the crisis seems to confirm that it is characterised by a high degree of external flexibility, which means that companies tend to adapt to times of change by reducing the number of staff, rather than, for example, adjusting
8. This tendency was most evident during the first year of the crisis, which saw the most rapid growth in unemployment. Between 2008 and 2009, 80 per cent of the jobs lost by 1624 years olds, and 67 per cent of those lost by 25 to 29 year olds were temporary.
work times (as is the case in other European countries, particularly in the early stages of the crisis).9 It is also important to note that, in addition to the temporary nature of employment, precarious work has other, equally important dimensions that have a negative impact on the quality of youth employment in Spain. These include: (a) the high significance of forms of unpaid work, such as work placements or scholarships; (b) the increasing number of false self-employed workers; (c) the large number of young people in situations of
9. This situation has its basis in Spain in a model of business competition which is focused on the reduction of costs and prices, and is reflected in aspects such as: the limited development of innovation processes, the emphasis on creating jobs which require workers with low qualifications, low levels of in-company training and an unjustified predominance of temporary employment.
Table 4: Youth employment in Spain, by age group and occupation, 2008 and 2012 ('000)
2008 Occupation 1624 Managers Professionals Technicians and associate professionals Clerical support workers Service and sales workers Skilled agricultural, forestry and fishery workers Craft and related trades workers Plant and machine operators, and assemblers Elementary occupations Armed forces occupations TOTAL Source: EPA, INE (first quarter). 19.6 91.2 170.2 201.4 470.2 24.2 368.9 144.6 334.6 25.0 1,849.9 2529 89.8 366.7 382.6 286.9 508.7 31.2 473.0 246.1 370.9 17.2 2,773.3 1624 3.8 76.6 73.8 70.1 315.3 19.1 98.3 48.7 130.6 14.2 850.5 2529 28.6 339.2 183.4 188.0 464.4 27.2 205.7 107.9 218.3 27.2 1,789.8 2012
undeclared work; (d) poor working conditions, including low wages, mismatch between levels of training and skills required, the length and flexibility of the working day and the high incidence of work-related accidents; (e) reduced access to social protection; and (f) weaker collective protection due to recent labour market reforms in terms of rights protected by international regulations, including freedom to join unions, collective bargaining and protection against harassment and discrimination. (2) Two factors can be highlighted that are related to socio-demographic characteristics: On the one hand, the level of education, since the crisis has had a greater impact on the employment of people with medium to low levels of education, a high percentage of whom are young people (Table 5).10
Table 5: Youth employment by age groups and highest level of education attained, Spain, 2008 and 2012 ('000)
2008 Educational level* isced 02 isced 34 isced 56 TOTAL ISCED-1997 Source: EPA, INE (first quarter). 1624 257.4 1,259.3 332.2 1,848.9 2529 202.2 1,479.0 1,092.1 2,773.3 2012 1624 88.4 548.5 213.4 850.3 2529 109.0 912.6 768.2 1,789.8
On the other hand, nationality, since there is more vulnerability among young people in the 16 to 24 years old group11 who are not Spanish nationals (Table 6); this is particularly the case among men who are employed in the construction sector.
10. UNESCO developed the International Standard Classification of Education (ISCED) to facilitate comparisons of education statistics and indicators across countries on the basis of uniform and internationally agreed definitions. The reference for the tables included in this report is ISCED-97, which provides six levels of education: 0 (Pre-primary education); 1 (Primary education or first stage of basic education); 2 (Lower secondary or second stage of basic education) 3 (Upper secondary education); 4 (Post-secondary non-tertiary education); 5 (First stage of tertiary education); 6 (Second stage of tertiary education)
11. The itemised data for the 2529 age group were not available at the time of writing this report.
Table 6: Youth employment (1624 years) by citizenship in Spain

Citizenship Country citizens Foreigners citizens 2008 1,524.3 325.6 1,849.9 Source: EPA, INE (first quarter). 2012 714.4 136.1 850.5 Dif 809.9 189.5 % 53.1 58.2
(3) Finally, it is important to draw attention to the fact that Spains socioeconomic structure is characterised by a pronounced geographical diversity, with the different Autonomous Regions12 having significantly different situations in terms of a whole range of variables, including population, productive structure and level of income. There is also a high degree of heterogeneity in the labour market, with significant differences in terms of both employment and unemployment rates between neighbouring regions. These differences have been historically persistent. Acknowledgement of this diversity is important when addressing the diagnosis of problems associated with the current economic climate, and consequently for the policies which are adopted to tackle them. The reason for this is that, although the crisis has affected youth employment throughout Spain, the extent of its impact has not been the same in all the different Autonomous Regions (Table 7). This differential behaviour is explained mainly by regional differences in the productive structure, so that Regions which before the crisis had higher levels of specialisation in activities such as construction and related industries, and services with lower added value, have been particularly badly affected. There are additional associated factors, such as the level of regional debt or the different policies adopted to deal with the crisis by the various Regional Governments.
Table 7: Youth employment (1624 years) by Autonomous Community, Spain, 2008 and 2012 ('000)
Autonomous Community Andaluca Aragn Asturias Balears, Illes Canarias Cantabria Castilla y Len Castilla La Mancha Catalua Comunitat Valenciana Extremadura Galicia Madrid Murcia Navarra Pas Vasco Rioja, La Ceuta* Melilla* Total National 2008 367.4 48.5 30.9 42.9 77.4 18.9 83.7 97.2 304.9 217.4 42.3 89.4 253.3 75.4 21.7 62.2 12.6 2.4 1.6 1,849.9 2012 151.7 25.6 11.1 25.7 40.5 8.6 37.1 42.1 151.3 81.5 19.8 49.1 120.4 32.7 12.1 34.6 4.8 0.9 0.9 850.5 Dif 215.7 22.9 19.8 17.2 36.9 10.3 46.6 55.1 153.6 135.9 22.5 40.3 132.9 42.7 9.6 27.6 7.8 1.5 0.7 999.4 % 58.7 47.2 64.1 40.1 47.7 54.5 55.7 56.7 50.4 62.5 53.2 45.1 52.5 56.6 44.2 44.4 61.9 62.5 43.8 54.0
1.4 Profile of Youth Unemployment (2012)

An analysis of the data allows us to identify the main features characteristic of youth unemployment in Spain, after four years of the crisis and its impact on the labour market.13 The first important variable to be considered is gender: the number of men out of work is higher than that of women in both age groups (Figure 4).
* Ceuta and Melilla= Automous cities. Source: EPA, INE (first quarter).
12. The administrative structure in Spain is organised on three different levels: the Central Government; 17 Regional Autonomous Communities; and 52 Provinces. There are also more than 8,000 local municipalities. 13. The effects of the crisis on employment began to be felt in the second half of 2008. The annex includes a series of data for 20002012.
This situation can be explained by two main factors. First, the differences in the sectoral composition of employment, with a higher concentration of men in the sectors which are particularly badly affected by the crisis (such as construction). On the other hand, women tend to be more present in sectors which have endured the crisis better (such the health service and education). Second, there are differences in levels of education, with a greater proportion of women in the labour market who have better qualifications and have been less badly affected by the decline in employment.
Table 8: Youth unemployment rate by age groups, sex and highest level of education attained, Spain, 2012 (%)
Both sexes Educational level ISCED 02 ISCED 34 ISCED 56 Total 1624 58.8 49.5 37.0 52.0 Males Educational level 1624 57.7 53.7 37.5 54.0 Females Educational level 1624 60.7 45.9 36.7 49.8 2529 41.7 27.1 22.6 29.3 2529 42.2 28.3 23.2 32.9 2529 42.0 27.7 22.8 31.2
Figure 4: Rate of youth unemployment in Spain, by age groups and gender, 2012 (%)
60
ISCED 02 ISCED 34 ISCED 56 Total
50
40
ISCED 02 ISCED 34
30
ISCED 56
20
Total
Source: EPA, INE (first quarter).

10
0 1624 Males Females 2529
The level of unemployment also shows differences in terms of nationality, with the highest figures being those for young foreigners 16 to 24 year olds 59 per cent in 2012, against 50 per cent for Spanish nationals (including those with double nationality). This can be explained by the greater relative concentration of this group in sectors particularly badly hit by the crisis especially in the case of men (construction) and in jobs which are temporary or have low qualification requirements. Another important variable is the duration of unemployment, since the percentage of young people who are out of work for an extended period of time 1 year or longer has risen significantly, reaching up to 40 per cent and even 50 per cent among younger adult males (Table 9).
Source: EPA, INE (first quarter), authors calculations.
The second important variable is training, with much higher levels of unemployment affecting young people with poorer qualifications (Table 8). The reason is the significant concentration of this group of the population in temporary jobs, with low qualification requirements and lower productivity, which are also more vulnerable to the adjustments made by companies in times of crisis. In addition, this group has greater difficulty seeking jobs in comparison with people with higher levels of education or training.
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Table 9: Youth unemployment by sex, age group and duration of unemployment, Spain, 2012 ('000)
Total Both sexes 1624 2529 Males 1624 2529 Females 1624 2529 Source: EPA, INE (first quarter). 418 363.4 11.6 16.4 142.3 116.2 101.3 64 162.7 166.8 503.8 447.2 14.5 16.5 154.6 146.6 89.5 81.1 245.2 202.8 921.8 810.5 26.1 32.9 296.9 263 190.8 145.1 408 369.6 Has already found a job <6 months 6 to 12 12 and over
This suggests an extremely worrying scenario, since longterm unemployment contributes significantly to increasing the risk of poverty and social exclusion (especially if we take into account that these people stop receiving unemployment benefits and other subsidies such as job seekers allowance). Finally, it is important to highlight a phenomenon that has become particularly widespread over the past few years, that of young people not in employment, education or training (NEET). The EU institutions recognise this section of the population as people who are unemployed and inactive, and are not studying or receiving any training. Using this definition, in Spain in 2012, 19 per cent of 16 to 24 years olds and 27 per cent of 25 to 29 year olds come into this category. However, it is important to note that there are many doubts about this concept, in terms of its theoretical delimitation and statistical quantification, as well as the measures proposed to address it. As such, it is possible to offer a critical view of the way this phenomenon is being addressed, based on two dimensions: On the one hand, an in-depth analysis of the available statistics leads us to the conclusion that the supposed growth of this so-called ni-ni generation ni trabajan, ni estudian (they are not working, they are not studying) over the past few years in Spain lacks a sound empirical foundation.
For example, if we analyse the evolution of the indicator for people out of work in terms of their inactivity, we observe that the figure for students has risen significantly since the beginning of the crisis, accounting in 2012 for 88 per cent of the total for 16 to 24 year olds, and 41 per cent of 25 to 29 year olds. An itemised analysis reveals that this tendency is the same for both genders. However, we see different behaviour in the category of people particularly women who are economically inactive due to housework, which has declined over the period. On the other hand, it is important to highlight the fact that the political and media perception of this phenomenon tends to focus mainly on the psychological aspects of the people affected and to blame them for their situation. This contributes to hiding the real working and social situation of young people in Spain.14 As an alternative, it would seem more reasonable to address the structural factors that contribute to situations of inactivity among young people in terms of both work and education. These factors are related to both the participation of young people in the labour market the most significant characteristic of which is, as we said ear14. For example, the media, which contributed significantly to exaggerating the importance of this phenomenon focusing on aspects such as the indifference and apathy of Spanish youth has nevertheless failed to reflect the increasing number of protests and social mobilisations which contributed to the success of the indignados movement, which began on 15 May 2011 and has attracted international attention.
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lier, the high level of precarious work and the lack and poor management of training, employment and social counselling resources.
exceptions, have been clearly oriented towards greater flexibility have not had a significant impact on the net creation of jobs, contributing instead to increasing the level of precarious work.17 Among the various reforms adopted within the context of the Great Recession, the most relevant and far reaching in terms of both its aims and scope is without doubt the most recent legislation, that is, the reform approved by the current conservative government in 2012. Law 3/2012 provides for key elements of the deregulation of labour relations and clearly undermines the effectiveness of trade union activity. It contains a series of measures, including: (a) consolidation of the unilateral decision of the employer as the arbiter of practices in the workplace, instead of collective negotiation; (b) the reinforcement of discipline based on low compensation for dismissal, without arbitration and contracts increasingly with reduced wages; (c) subordination of collective agreements to management decisions; and (d) a dramatic reduction of the right to work in terms of its institutional recognition. In this way, labour law is becoming subject to the needs of economic growth, business productivity and employability rather than a question of security. A detailed analysis of the overall content of this reform goes beyond the scope of this report. Nevertheless, it is important to highlight those aspects that most affect the employment situation of young people:
2. Labour Market Reforms: An Overview

Employment legislation in Spain has been subject to continuous and intense modification since the beginning of this crisis, which has culminated for the moment in the reform of the labour market approved by the current conservative government in 2012.15 The various rules and regulations approved during this period are diverse in both character and scope, but essentially they are aimed at one target: to promote greater deregulation of the labour market, based on the premise that this is essential to encourage the generation of jobs (particularly among groups with higher levels of unemployment, which includes young people). The application of these reforms has been requested by various international bodies and institutions that have repeatedly argued over the past few years that the greater impact of the crisis in Spain compared to other European countries is due mainly to the rigidity of employment regulations. However, this assertion fails to take into account the fact that with the same labour legislation which is now seen as rigid and considered to be the reason for the rise in unemployment during the period 19952007, Spain was the most successful European country in terms of job creation. Another aspect which is overlooked is that, since then, the levels of unemployment in Spain have shown significant geographical diversity, which can hardly be attributed to common legal regulations for the whole country.16 Apart from this, it is clear that, as the results of different studies confirm, the successive labour reforms introduced in Spain over the past three decades which, with a few
15. Royal Decree Law 3/2012 of February 10 concerning urgent measures aimed at reforming the labour market. Following debate at the Congress and the Senate, the text was finally approved in July: Law 3/2012 of 6 July on urgent measures for labour market reform. 16. The unemployment rate in Spain during the first quarter of 2012 was 24.6 per cent, with a 19.6 per cent difference between the Region with the highest level of unemployment, Andalucia, 35.5 per cent, and the one with the lowest, the Basque Country, 13.6 per cent.
New types of indefinite contracts to support entrepreneurs. This is a contract which is only applicable to companies with less than 50 employees. It establishes a compulsory probationary period of one year, during which time a worker can be made redundant for any reason whatever, without any compensation. Apart from the implications for workers rights, this potentially leads to a situation in which companies use this one-year probationary period simply as a form of low quality temporary contract. Greater flexibility of apprenticeships and training contracts. This has various implications: the extension of the
17. The Workers Statute underwent 52 different reforms between its original approval in 1980 and 2011. For an in-depth analysis of these reforms and their effects on employment, see Fundacin 1 de Mayo: 52 reformas del Estatuto de los Trabajadores en 1980 (1 de Mayo Foundation: 52 reforms of the Workers Statute in 1980) Fundacin 1 de Mayo. Madrid, 2012 (available at www.1mayo.ccoo.es).
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maximum length of this type of contract to three years; raising the age limit to 30 years, which in practice may mean that the contracted person is over 33 years old (if it lasts three years);18 the possibility that the apprentice contract can be renewed by the same employer or another, for a different activity or occupation; and the removal of the relationship between the apprenticeship or training period and an eventual qualification. The risk is that the apprenticeship system can lead to a situation in which young people simply provide a cheap form of labour and that this type of contract obliges them to remain for years in unskilled jobs with reduced levels of stability and low wages, without being able to obtain any real and certifiable skills or job specialisation.
The approval of this reform has been expressly rejected by the trade unions, which have actively supported increasing opposition to the measures (including calling for a general strike).21 The unions have strongly emphasised the fact that the legislation will not have a significant effect on net employment creation, leading instead to higher levels of precariousness, in terms of both working conditions and the protection of the individual and collective rights of workers (including the right of union affiliation and collective bargaining). They have also drawn attention to the fact that the manner in which this legislation was passed shows contempt for democratic procedures, since the government did not respect the right of information and previous consultation with the main unions, which are guaranteed under the Spanish and European social policy regulations. Furthermore, the legislation did not meet the urgent necessity criteria required to entitle the government to pass it by means of an emergency procedure. Finally, the trade union organisations have emphasised that these reforms ultimately encourage a business competition model based on the reduction of prices and labour costs, which is detrimental to innovation and added value. It is a model which will hinder the necessary progression towards a more sustainable economic model, while leading to greater job instability, which will in turn have a particularly negative effect on young people.
Modification of the regulations affecting part-time jobs, which includes the elimination of the prohibition of overtime or complementary work.
Greater flexibility in the legal process for dismissals by increasing the number of causes, phasing out administrative requirements, and considerably reducing the levels of compensation. Significant increase in the power of employers to substantially modify working conditions. The reform establishes a non-negotiated internal flexibility model, which eliminates the participation of workers representatives and favours the unilateral decision of employers when modifying or imposing working conditions (in aspects related to salaries, working hours, professional classification and so on).
Reform of the collective bargaining process in order to: (a) increase the possibilities for companies to ignore collective agreements (b) encourage the decentralisation of the collective bargaining system, thereby reinforcing the role of individual companies. This is a counterproductive change which will have an extremely negative impact on the right to collective bargaining, particularly because of the number of small companies in Spain;19 and (c) the limitation of the automatic renewal of collective bargaining.20
3. The Challenge of Youth Employment in Spain: Policy Pointers

Employment policies can play a significant role in the present crisis because they have a positive albeit limited impact on the generation of jobs and the consequent reduction of unemployment (as is confirmed by the results of the various evaluation studies carried out both at international and national levels). Their impact depends, however, on the development of other policies such as
until any new agreement is put in place. Before the 2012 reforms there were no time limits to any such continuation, but now a one-year limit has been applied. 21. The general strike took place on 29 March 2012. It was the second general strike to be called during the period of the crisis, the first being held on 29 September 2010 in protest against the employment legislation passed by the then socialist government.
18. Before this reform, the age limit was 21 years. 19. 90 per cent of Spanish companies have fewer than 10 workers, and something like 60 per cent have only one or two. This is why the sectoral collective agreements are so important, since in Spain they are erga omnes, in other words, they imply obligations or rights for all. 20. The concept of automatic renewal implies that, when the stipulated period for a particular agreement runs out, it continues to be in effect
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the adoption of macroeconomic policies to stimulate the economy as a whole, as well as specific policies to boost industry, education and innovation which all contribute to enhancing economic recovery in the various different productive sectors. There is not one single or magic solution which guarantees success in facing the challenges posed by youth unemployment, especially considering the scale of the current worldwide crisis. In any case, as pointed out by the International Labour Organisation (ILO), to tackle this situation it is necessary to adopt an approach aimed at combining micro and macroeconomic interventions that would address both the demand and supply sides of the labour market and the quantity and quality of employment.22 The objective of this chapter is to propose measures that can help to boost the creation of jobs for young people in Spain. These are based on two main principles: First, in the current situation of budgetary restrictions, the design and application of measures should be based on a more precise identification of the different groups of young people, which would then permit us to prioritise and customise solutions by adapting the available resources to specific needs and areas of vulnerability. Second, to maximise potential the development of employment policies should be planned over two time scales: in the short term, by adopting direct impact measures aimed at mitigating the immediate consequences of the crisis which focus specially on the most vulnerable sections of the population; and in the medium term, by promoting a reorientation of these policies to improve their effectiveness both at national and regional level and thus contribute to guaranteeing a more equal transition in terms of the impact caused by the multiple challenges we face in the coming decades demographic, social, environmental and offering new opportunities for improving professional skills and qualifications, thereby helping to create an economy which is more productive, sustainable and inclusive.
3.1 Short-term Measures

Better Identification of Target Groups
Precarious work is in general terms the distinctive structural almost endemic characteristic which defines the participation of young people in the labour market in Spain. The crisis has accentuated this problem, since as we have stated on various occasions, it is precisely young people who have been most adversely affected. Nevertheless, within this general framework, it is possible to identify different situations and the existence of groups of young people with specific characteristics and requirements (Box 1).
In the short term the Public Employment Services should prioritise young people with low levels of education or training
For two reasons, in the current crisis the most vulnerable group is that formed by young people with the lowest level of education or training: first, because it is this group which has been most seriously affected by unemployment, while also suffering from a lower level of social protection (which is associated with their higher level of job instability). Second, because they are clearly going to be in a disadvantageous position in terms of accessing new jobs when the economic recovery becomes more consolidated (especially since the strategic changes in productive models is associated with an increasing demand for people with high and intermediate levels of qualifications). The main conclusion which can be drawn from this diagnosis is that it is fundamental in the short term to prioritise the measures aimed at this group. In order to do this, it is necessary first to reinforce and improve the effectiveness of the Public Employment Services (PES), so that rapid, individualised and comprehensive attention is provided for people who are looking for a job. It is also of paramount importance to make information as accessible as possible to all those people who have given up their studies prematurely and are unemployed, so that they can become integrated into the PES circuit of services. Second, the main objective of the measures which are put in place should be to broaden and improve the skills
22. International Labour Office: The youth employment crisis: Time for action. ILO. Geneva, 2012.
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Box 1. The working situations of young people in Spain 1. Unemployed. These can be split into two groups: (a) young people who cannot nd their rst job and seek to integrate themselves into the labour market in the best possible conditions, who in some cases prolong their period of education or training because of the impossibility of nding employment; and (b) young people who lose their jobs, and either opt for completing their studies (the youngest), or have no intention to return to studying or improving their level of education, and therefore add to the gures for inactivity. Likewise, among the young people who are actively seeking employment, we can differentiate: (a) those with a lower level of education or training, who have rapidly lost their jobs and have greater difculties in nding other work, and (b) those with a high level of education or training, who have lost their job and show signicant disparities between their level of qualication and the job they have been carrying out. It is important to underline this point: the economic crisis has led to a group of young people (the youngest) returning to their studies. However, another signicant group does not consider this option. 2. Employed. These include: (a) those whose work record is heavily inuenced by job instability, with the following characteristics: lower job security and employment stability (they are stuck in temporary contracts with heavy job rotation); greater presence in informal types of work (such as grants, work placements and false freelance jobs); poor working conditions (in terms of promotion, salary, working timetables, work-related accidents and so on); and a tendency to have discontinuous employment records, with various short-term jobs (in times of crisis there is also pressure to accept low quality jobs and worse working conditions); and (b) those with a stable job record, who, unlike the previous group, have greater job stability, better prospects for promotion within the company and better working conditions. We can also perceive different situations within both groups in terms of the level of education or training (high and medium-low). 3. People out of work who have given up their studies prematurely, have never worked, and have not received any kind of training which permits them to improve their qualications and thus increase their potential to nd employment.
Source: Jorge Aragn, Alicia Martnez, Jess Cruces and Fernando Rocha: Las polticas de empleo para jvenes en Espaa. Una aproximacin territorial (Employment policies aimed at young people in Spain. A territorial approach), Ministry of Employment and Immigration, Madrid, 2012.
and qualification levels of this section of population. Education and training are essential elements in fulfilling this objective, although efforts should be made to adapt the content of training programmes so that they cater as much as possible to the demands of the production system. Logically, this needs to be carried out having previously identified and analysed the characteristics and needs of each region.23 Third, it has been proposed that young people aged 16 to 18 who have left education prematurely mainly for reasons associated with the labour market should be encouraged to go back to studying. If this were to take place, it would be essential to offer interesting and at23. In Spain, competence for training policy lies with regional governments.
tractive alternatives to encourage them to return, by offering flexible training courses, with the added attraction of income support. There should also be a more personalised advice service so as to increase the possibilities of re-entering employment. Various bodies and international institutions including the ILO have highlighted the efficiency of dual education systems. In this respect, although ideally young people would return voluntarily to the education system, perhaps, as an alternative to extending the age of compulsory education, it would be advisable to consider setting up programmes that permit young people to combine school education with a more practical or jobrelated form of training.
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Finally, it is important to consider the needs of those who, despite being unemployed, have no desire to go back to studying. For this group, as is the case with those who gave up studying at an early age, the most effective tool could be educational and employment orientation and advice, with personalised programmes to encourage them to return either to the education system or the labour market.
Two priorities for improving the transition of young people to the labour market: reducing school drop-out figures and increasing participation in vocational training systems
Over the past few decades Spains education system has seen significant advances which are confirmed by a number of indicators including widespread literacy, schooling for everyone, increasing female education and the growth of higher education. However, there are still some persistent structural problems or imbalances, two of which need to be mentioned here since they particularly affect the transition of young people to the labour force: (1) The high number of early school leavers, which in 2011 accounted for 26.5 per cent of all pupils. The figures are higher for males (31 per cent) than females (22 per cent).24 This is specially worrying in two respects: first, because it tends to lead to a greater degree of precariousness in the employment patterns of those affected; and second, because it has a high social and economic cost in terms of the increase in poverty and social exclusion (caused by the increased vulnerability of this section of the population to situations such as the current crisis). In this respect, intervention strategies should focus on aspects such as: (a) improving the understanding of the causes of the phenomenon; (b) reinforcing the role of career guidance during compulsory secondary education; (c) guaranteeing an adequate supply of alternative training programmes; (d) making post-compulsory training programmes more flexible and fostering an education system which is more interconnected and facilitates the passage from occupational training to general education and vice versa, while increasing permeability between the education / training system and the job market with the aim of encouraging young people to go back to courses and training cycles they abandoned prematurely; (e) increasing compatibility between work and training by offering more intensive courses; (f) increasing the availability of distance learning and increasing the number of adult education centres; and (g) setting up a system which recognises, evaluates and certifies qualifications
Promoting careers advice for people with high or intermediate levels of education and training, and re-orienting temporary measures for employment creation
A second area of activity needs to be focused on young people with intermediate levels of education and training by promoting information and advisory services that help to facilitate their integration into the labour market. This should also be made available to young people with university degrees who are out of work. On the other hand, it has been suggested that the objectives of the programmes designed to create temporary public employment which have been adopted because of the crisis could be modified. The idea would be to reorient them to focus on public services which would permit them to cater for social needs such as disability care, and also generate jobs based on higher qualification and on the development of activities with potential for medium-term growth in both emerging and existing sectors.
3.2 Medium-term Measures

In the medium term, there should be three general areas of focus: (a) improving the transition from education to the productive system; (b) reinforcing and improving active employment policies; and (c) strengthening the role of collective bargaining.
24. Data drawn from 18 to 24 year olds who have not completed the second part of secondary education and are not currently in any form of education or training (source: Eurostat).
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acquired through work experience or non-formal ways of learning. (2) The insufficient participation of young people in vocational training. Developed economies need professionally-run vocational training systems (VT) which meet social and productive requirements in contexts of rapid transformation, growing competition and economic expansion. This context and these needs are particularly visible in the case of Spain. Consequently, it is of paramount importance to adopt measures aimed at fostering the participation of young people in vocational training. These measures can be structured in terms of three main objectives: (a) making VT more attractive by means of institutional intervention that diversifies supply, creates itineraries for less talented students, offers options for returning to general education, both at secondary and higher education levels, fosters modularisation, applies a quality guarantee system and encourages interaction between stakeholders and organisations involved in the local productive system; (b) fostering quality lecturers and tutors by encouraging competition between them; and finally (c) improving the information, advice and career guidance services so that any decisions which may be made can take education and past employment history into account.
seekers while developing comprehensive personalised programmes aimed at integrating unemployed young people in the labour market within four months of losing their job; (c) centralising information regarding both users and the activities of collaborating organisations; (d) modernising services by maximising the advantages offered by information and communication technologies; (e) fostering coordination and cooperation between the different administrations responsible for managing employment the National Employment Service and the Autonomous Regions Services as well as between the different private organisations that are involved.
Reinforcing career guidance and information services

The career guidance and information service is of key importance because it is the first service with which the unemployed person should come into contact. Career guidance should therefore be treated as a general service which should be extended to young people by guaranteeing its presence in education centres.
Specialisation of incentives for job creation

Studies have revealed that policies to incentivise job creation have had a minimal macroeconomic impact in terms of job creation or a reduction in unemployment and are largely ineffective when the target population is so large. The proposed solution is to redesign incentive policies, which, in the case of young people, should focus on fostering stable employment (immediate indefinite contracts or conversion from temporary contracts). On the other hand, it is also proposed that the incentives for work placement contracts be limited exclusively to cases in which they are converted into indefinite rather than provisional contracts as a means of encouraging both employment stability and the consolidation of a professional career for young people.
Reinforcing and improving the effectiveness of Public Employment Services

A key point is the increase in the budget and number of workers in the Public Employment Service (PES), because the ratio of resources allocated in Spain per unemployed person is much lower than that in the most advanced countries and clearly insufficient to meet the current and future needs of users. This is particularly evident when we consider the Community guidelines on waiting times in terms of attending to people who have lost their jobs (which in the case of Spain are certainly not adhered to, especially in the case of young people). Also, it would be necessary to focus on ways of improving PES performance by clarifying objectives such as: (a) encouraging young people to register with the PES, even when they are not eligible to receive unemployment benefits; (b) establishing greater specialisation in the PES so as to improve support mechanisms for first-time job
Fostering job stability

Support for job creation should be coupled with measures aimed at reducing the large number of unjustified temporary jobs, which still persist in Spain, although the
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number has fallen over the past two years. This is a structural problem that affects young people in particular. It contributes to a deepening of the segmentation of the Spanish labour market and has important implications in terms of both social cohesion and the competitiveness of companies themselves. The high level of temporary employment is results from a number of factors and thus cannot be explained by any single issue (such as the cost of dismissal). Therefore, any attempt to address it must necessarily be multidimensional. In general, potential solutions should be based on three main objectives: (a) fostering job stability, thereby fulfilling the double objective of guaranteeing workers security and at the same time catering for the needs of a new production model based on higher qualifications and innovation; (b) putting in place measures aimed at reducing unjustified temporary contracts and, where necessary, using temporary jobs in a more constructive way; and (c) encouraging the development of negotiated forms of internal flexibility essentially through collective bargaining as an alternative to the more disruptive option of external flexibility.
formation and career guidance service for unemployed people which offers them access to updated information about the available training and employment opportunities, thereby offering them a more efficient way of planning their integration into the labour market.
Reinforcement of training / employment programmes

There are a number of specific programmes which are particularly interesting for young people. They combine training with employment and have had notable success in terms of labour integration in Spain. We are referring to Workshop Schools and Craft Centres25 and Employment Workshops.26 The development of these programmes does have a series of weaknesses, however, and by evaluating them a number of areas of improvement can be identified:
Reinforcement and improvement of occupational training

An area of paramount importance in the current situation is the reinforcement and improvement of occupational training, focusing on aspects such as: (a) a more precise identification of the target groups for the different areas of activity; (b) the adoption of a more proactive approach in the design of training programmes, which should be based on diagnosis of the characteristics of the productive structure in the different regions and clearly aimed at broadening and improving the populations level of education and training (especially in view of a strategic context in which, as we mentioned earlier, there is an increasing medium- and long-term demand for highand medium-level qualifications); (c) the articulation of efficient planning and coordination processes, as well as systematic, homogenous and shared evaluation mechanisms that permit the identification of best practices at regional level and, at the same time, link funding to a certain extent to the results obtained in terms of labour integration; and (d) the development of an efficient in-
Regulations should be open with respect to activities, without limiting them, and based on two general principles, social interest and local employment requirements, so as to be able to be more specific in each new programme. The ideal situation would be to combine public service activities with others that are more closely connected with the local productive fabric, focusing on emerging sectors and others that generate employment and therefore require a growing workforce. The organisers could either be public or non-for-profit private bodies. Public Employment Services should be more proactive in orienting activities towards creating employment and encouraging local development. Since the ultimate aim should be the integration of students into the labour market, the involvement of pri25. Workshop schools and craft centres are part of a publicly-funded employment / training programme designed to improve the employment opportunities of young unemployed people under the age of 25 and to make it easier for them to enter the labour market. In the case of workshop schools, the projects can last a minimum of one year and a maximum of two years. For craft centres, the duration is one year. In both cases, the total time is divided into two stages: a first stage of six months solely for training and a second stage that lasts until the end of the project and for which training contracts are applied, with a minimum of six months and a maximum of eighteen for workshop schools and six months for craft centres. 26. This is a mixed programme aimed at young unemployed people aged 25 or older that combines training and employment in new sources of jobs related to public services and social activities. It is promoted by public or private non-for-profit organisations that facilitate the participants integration in the labour market, either by working for companies or forming cooperatives, or for themselves in the creation of business projects. These programmes are open to young people aged between 25 and 29.
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vate companies with the projects would seem the best option, always bearing in mind the following: priority should be given to projects that guarantee a commitment by the companies involved to contract students after the programme is completed; a network of companies should be created that are interested in a projects particular specialisation; a three-month tutorial period needs to be established after the completion of the project to support integration into the labour market; a compulsory integration quota needs to established.
fer information about the opportunities and risks associated with each activity; (b) putting tutorial and financial services in place including access to credit and venture capital supported by mechanisms to facilitate bureaucratic procedures (including the registration of new companies), while introducing partial exemptions to social security contributions during the first years; (c) complementing this with the development of financial support measures and instruments especially aimed at young unemployed people who wish to set up their own business.
Reviewing the initial training phase in workshop schools and craft centres. One of the objectives could be to offer theoretical training in parallel with productive activity. Most of the participants in these programmes are students who have dropped out of school and in some cases find themselves at risk of social exclusion. In both cases, theoretical training can be a total failure and sometimes the required learning method is connected more with gaining socio-labour skills than acquiring a theoretical knowledge of the activity to be carried out. The PES must play a more significant role in promoting projects, as well as carrying out follow-ups and evaluations of the programmes themselves and assessing the degree of labour integration attained by the students.
Strengthening the role of collective bargaining

Collective bargaining plays a particularly important role in promoting employment and improving working conditions for young people. The measures that could be adopted in this field must be properly identified and adapted to the agreements reached by social partners in the different areas of negotiation (sectoral, territorial or within individual companies). However, it is possible to outline a series of objectives of special importance, which include:
fostering job stability and eliminating unjustified temporary employment; encouraging the implementation of plans aimed at maintaining employment and staff renovation by means of the appropriate use of partial retirement schemes, combined with replacement contracts; encouraging the development of contracts associated with training or work placements as an alternative to the growing use of grants and non-remunerated work practice, as a means of integrating new graduates into the workplace (this should be combined with the improvement of the employment conditions associated with these contracts; the control of the fraudulent use of both training contracts and non-formalised types of work also needs be reinforced); guaranteeing access to training programmes for young people in temporary employment while ensuring that the courses provided meet the specific requirements of real professional advancement (rather than limiting them to the improvement of skills for the post currently held);
Encouraging self-employment and the social economy among people with high levels of education or training
In general, evaluation of the programmes designed to encourage self-employment and the social economy does not reveal particularly positive data. Added to this is the fact that the crisis has had a significant impact on entrepreneurial activity in Spain, which in the case of young people has led to an increase in the amount of debts incurred both personally and by their families. Encouraging self-employment may make sense for specific groups, such as those with a high level of education or training, or those who live in rural areas, helping to reduce the migration of young people from the countryside. In this respect, the measures that have been suggested to encourage self-employment include: (a) increasing the number of training and career guidance services that of-
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improving working conditions, especially in terms of payment, professional category and promotion, working hours and occupational health and safety; guaranteeing compliance with principles of equality and non-discrimination.
it is essential to improve coordination between the different Regions and within the Administrations themselves on the basis of respect for the principles of equity and territorial cohesion. (3) The implementation of evaluation and follow-up mechanisms continues to be one of the recurring deficiencies detected in the development of active employment policies in Spain. In this respect, all processes of implementing new measures should include a commitment to developing evaluation systems, which include assessments before, during and after. (4) Instead of the unilateral procedures for the adoption of labour reforms and measures that are commonly used by the various European governments, it is essential to promote and strengthen the role of social dialogue and the participation of social partners so that this becomes a central element of European policies. This is absolutely fundamental in the particularly critical context in which the crisis and the clearly unsuccessful efforts to find a consensual solution to it at Community level has contributed to increasing public disaffection among citizens with the European integration project. (5) The labour reforms approved in Spain since the beginning of the crisis have been oriented towards deregulating the labour market and making it more flexible, based on the premise that this will contribute to creating employment. In this respect, it is important to draw attention to the fact that the labour market does not itself create or destroy employment, but is nevertheless affected by the evolution of the economy. This mechanism may be more or less effective, but its evaluation requires an examination of the factors that hinder economic activity especially from the point of view of demand and of how the labour market reacts to them. The conclusion of this premise is that the solution to the crisis does not depend mainly on labour policies and that priority should be given to measures that confront the structural challenges which the current crisis poses to the Spanish economy. Such measures even if they are not directly connected with employment have a significant impact on the creation of jobs and without them the efficiency of the measures directly related to employment will be drastically reduced. On the other hand, if these
4. Six Final Points for Reflection

(1) The scale of the challenges we face as a result of the current crisis means that it is necessary to make sufficient funding available to support the development of policies in numerous different fields. However, financial resources have been particularly badly affected by the budgetary restrictions imposed since 2010 within the framework of the Austerity Plans. This implies the need for greater effort in defining priorities, and in this respect, employment policies aimed at young people should focus on those with the lowest level of education or training. The approach to this restrictive scenario should be combined with collective reflection on how the different European governments have not hesitated to allocate huge sums of public money to bail out the banks, without even demanding that they make firm commitments in terms of investment in productive areas or greater regulation of the sector. This is in stark contrast to the numerous obstacles which emerge whenever demands are made about investment in social policies.27 In addition to this reflection there should be a serious and rigorous debate to examine the significant potential for growth in the income generated by the Public Administrations through taxes. (2) When planning the different measures aimed at fostering job creation that could be adopted in Spain, one important element which needs to be taken into account is the constitutional situation of the various Regional Autonomous governments. This is particularly complex, in that the different Administrations do not all have the same powers in their respective territories, and it is made even more complicated by the guidelines and directives established by EU institutions. In this respect, in order to maximise the efficiency of the measures implemented
27. For example, the Plan Anual de Poltica de Empleo (Annual Employment Policy Plan) for 2012, passed by the Spanish Government, establishes a 21 per cent reduction in funds allocated to active employment policies and this has a particular impact on projects that offer greater support in the integration of young people into the labour market, such as training, training / employment programmes and support for self-employment and business creation.
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policies are correctly implemented, measures to boost employment will attain their maximum potential. Therefore, on the one hand, we suggest that more shortterm measures are put in place to mitigate the most immediate consequences of the crisis. These would include: increasing public and private spending to stop the destruction of jobs; adopting financial measures to ease access to funding for companies and individuals; and reinforcing social protection by introducing complementary measures for people who are no longer eligible for benefits, and families whose members are all out of work. On the other hand, it is important that a longer term strategy is put in place to restructure the productive model and give it a more solid economic basis so as to create more and better employment, while increasing social justice and environmental sustainability. This is clearly an ambitious strategic objective since its fulfilment would require a combination of policies and measures at various levels. These need to be based on the premise that the change in the productive model implies both support for potential emerging activities in the different sectors, and substantial transformation in the management policies of Spanish companies (which traditionally tend to focus entirely on reducing prices and labour costs as a means of increasing their competitiveness). (6) The effects of policies to deregulate the labour market are particularly negative for the employment situation of young people, since in a situation of crisis such as the current one they lead not to a net increase of employment for this section of the population, but instead to greater precariousness and therefore greater social vulnerability. As the ILO has indicated, the difference between the youth employment challenge and the general employment challenge is that helping young people get the right start helps to ensure they follow a pathway to decent work. The longer it takes to get on that path, or if a pathway does not exist, the challenge becomes more difficult.28 Based on this argument, the fundamental question that needs to be faced by European governments is whether the solution to the crisis for young people must neces28. ILO, Youth: Pathways to decent work, Geneva, 2005.
sarily imply worse conditions and more insecurity following the principle any job is better than none or if all possible means should be used to facilitate their emancipation and access to decent living and working conditions.
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Statistical Annex
1. Youth population by age groups and relation with economic activity in Spain. 20002012 (1000)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Age group/economic activity
2000
1624 5,249.4 2,404.6 1,906.8 497.7 2,806.9 37.9 2,718.7 2,607.1 2,509.8 2,304.4 2,225.4 2,218.2 521.4 536.6 536.0 508.1 451.8 442.2 574.0 2,197.8 1,887.0 1,873.3 1,856.9 1,983.1 2,026.3 1,988.5 1,828.8 2,408.4 2,409.9 2,392.9 2,491.2 2,478.1 2,430.7 2,402.8 2,241.7 1,386.5 855.2 2,265.0 5,127.1 5,017.0 4,902.7 4,795.6 4,703.5 4,648.9 4,600.6 4,506.7 4,379.7 2,071.0 1,199.9 871.1 2,308.7 4,266.9 1,922.4 1,035.8 886.6 2,344.5 4,198.20 1,772.30 850.50 921.80 2,425.90
Total population
5,376.5
Active
2,495.8
Employed
1,868.6
Unemployed
627.3
Inactive
2,809.4
22
3,436.2 2,780.2 2,423.3 356.9 647.7 8.3 620.5 576.5 558.1 574.9 407.9 423.6 408.1 354.5 2,488.9 2,597.4 2,684.3 2,748.6 2,896.7 3,020.9 3,092.5 3,103.1 3,147.8 2,828.2 319.6 530.8 3,517.2 3,597.4 3,650.6 3,678.0 3,678.7 3,661.4 3,143.3 2,883.5 259.8 518.1
Population counted separately*
71.3
2529 3,607.4 3,118.6 2,740.9 377.7 488.7 3,482.7 3,000.6 2,364.5 636.0 482.2 3,306.4 2,858.7 2,156.1 702.5 447.8 3,131.6 2,716.1 2,008.3 707.8 415.5 3009.6 2600.4 1789.8 810.5 409.2
Total population
3,357.7
Active
2,779.8
Employed
2,320.8
Unemployed
459.0
Inactive
558.7
Population counted separately*
19.2
* Only from 2000 to 2002
Source: National Labour Force Survey (2 quarter, except 2012, first quarter)
2. Youth labour market rates in Spain, by age groups. 20002012

Activity rate Age group 1624 2529 Employment rate Age group 1624 2529 Unemployment rate Age group 1624 2529 2000 25.1 13.7 2001 20.7 10.4 2002 21.6 11.6 2003 22.3 11.8 2004 22.4 11.2 2005 20.4 11.4 2006 18.2 10.2 2007 18.2 8.3 2008 23.9 12.1 2009 38.1 21.2 2010 42.1 24.6 2011 46.1 26.1 2012 52.0 31.2 2000 34.8 69.1 2001 36.3 70.5 2002 36.8 70.8 2003 37.3 72.2 2004 37.9 73.5 2005 41.4 74.7 2006 43.1 76.9 2007 42.8 78.8 2008 39.8 76.0 2009 30.8 67.9 2010 27.4 65.2 2011 24.3 64.1 2012 20.3 59.5 2000 46.4 82.8 2001 45.8 80.9 2002 47.0 82.4 2003 48.0 84.0 2004 48.8 84.7 2005 51.9 84.4 2006 52.7 85.6 2007 52.3 85.8 2008 52.2 86.5 2009 49.7 86.2 2010 47.3 86.5 2011 45.1 86.7 2012 42.2 86.4
3. Ratio of youth unemployment rate to adult unemployment rate in Spain. 20002012

Age group Ratio 1624/2564 Ratio 2529/3064 2000 2.1 1.5 2001 2.4 1.6 2002 2.2 1.6 2003 2.3 1.6 2004 2.3 1.5 2005 2.6 1.6 2006 2.5 1.5 2007 2.7 1.3 2008 2.7 1.5 2009 2.4 1.4 2010 2.3 1.4 2011 2.5 1.5 2012 2.3 1.5
4. Youth unemployment rate by age groups and sex in Spain. 20002012 (%)
Age group 1624 Female Male 2529 Female Male 21.9 12.0 16.9 9.6 18.4 10.6 18.4 10.4 16.8 10.2 13.9 9.3 13.0 7.8 11.9 6.8 10.4 11.8 12.8 22.5 20.2 25.8 24.4 26.7 29.3 32.9 32.0 19.5 26.3 16.4 27.9 16.9 26.4 19.1 26.4 19.3 24.1 17.4 16.7 15.3 13.5 15.2 22.5 22.2 27.9 39.9 38.4 43.5 41.6 48.2 49.8 54.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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5. Youth unemployment rate by age groups and highest level of education attained in Spain. 20002012 (%)
Age group/ educational level 1624 ISCED 02 ISCED 34 ISCED 56 2529 ISCED 02 ISCED 34 ISCED 56 17.2 14.1 17.2 13.8 11.6 12.7 15.3 12.7 13.7 15 12.9 13.8 14.5 12.5 12.5 13.4 10.0 10.8 11.9 10.2 8.7 10.3 7.9 6.8 17.0 10.8 8.8 30.0 20.0 13.8 33.8 23.1 16.6 33.5 25.0 19.3 42.0 27.7 22.8 24.4 25.7 26.4 20.5 21.6 20.0 21.7 21.5 21.6 23.3 22.0 19.6 23.2 21.0 22.1 22.3 18.7 17.1 19.9 16.9 15.4 20.3 17.8 11.9 28.5 20.1 14.9 45.1 32.0 24.7 50.8 34.1 28.3 52.6 42.3 33.1 58.8 49.5 37.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
6. Youth unemployment rate by age groups and citizenship in Spain. 20002012 (%)
Age group 1624 Country citizens Foreigners citizens 2529* Country citizens Foreigners citizens 16.6 13.8 12.6 16.9 14.0 15.2 13.8 16.4 13.0 14.9 11.4 11.7 9.6 12.7 8.2 8.5 11.2 15.4 19.8 26.3 23.8 27.5 25.4 28.6 25.1 25.7 20.6 23.6 21.4 24.4 22.2 22.8 22.4 22.7 20.1 22.0 18.6 16.6 17.4 21.9 23.1 27.3 37.3 41.3 41.4 44.7 45.3 49.4 50.3 59.3 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: National Labour Force Survey (2 quarter, except 2012, first quarter) * Data not avalaible for 2012
7. Unemployment by age groups and duration of unemployment in Spain. 20002012 (1000)

Age group/duration 1624 total Has already found a job Less than 6 months From 6 to 11 months 12 months or over 2529 total Has already found a job Less than 6 months From 6 to 11 months 12 months or over 459 17.6 139.6 89.3 212.5 356.9 29.3 136 63.4 128.3 407.9 32.8 147.5 85.8 141.6 423.6 24 158.7 87.6 153.3 408.1 27.7 161.5 89.1 129.8 354.5 51.6 170.4 46.3 86.3 319.6 51.2 153.6 44.5 70.4 259.8 41 130 34.8 54 377.7 46.9 220 50.5 60.4 636.0 48.9 304.2 144.1 138.7 702.5 43.2 246.5 154.6 258.2 707.8 41.7 226.9 119.1 320.2 810.5 32.9 263 145.1 369.6 627.3 22.7 246.3 140.3 218 497.7 45 198 108.9 145.9 521.4 34.7 239 113.9 133.6 536.6 35.5 222.9 135.1 143.1 536 39.5 241.4 115.4 139.6 508.1 70.3 273.9 76.4 87.6 451.8 77.2 248.5 58.5 67.6 442.2 78.9 247 61 55.2 574.0 78.2 341.7 81.7 72.3 855.2 57.9 404.3 203 190 871.1 66.2 332.5 163.2 309.2 886.6 61.1 307.5 178.2 339.6 921.8 26.1 296.9 190.8 408.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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8. Youth neither in employment nor education and training (NEET) in Spain by age group. 2000 2012 (1000 and %)
Age group 1624 Total NEET rate 2529 Total NEET rate 661.8 19.7 652.7 19.0 669.4 19.0 640.3 17.8 630.8 17.3 596.4 16.2 527.7 14.3 496.5 13.6 566.5 15.7 782.5 22.5 773.3 23.4 745.5 23.8 817.8 27.2 644.4 12.0 616.6 11.7 638.4 12.5 637.7 12.7 629.9 12.8 581.2 12.1 523.0 11.1 533.5 11.5 644.8 14.0 853.1 18.9 818.4 18.7 831.9 19.5 815.7 19.4 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
9. Youth unemployment rate (1624) in Spain, by Autonomus Community. 20002012 (%)

Autonomous Community Total National Andaluca Aragn Asturias Balears, Illes Canarias Cantabria Castilla y Len Castilla La Mancha Catalua Comunitat Valenciana Extremadura Galicia Madrid Murcia Navarra Pas Vasco Rioja, La Ceuta + Melilla Ceuta* Melilla* * Ceuta and Melilla= Automous cities. Source: National Labour Force Survey (2 quarter, except 2012, first quarter) 2000 25.1 36.4 16.6 34.4 9.2 24.3 30.8 29.0 19.6 18.6 20.6 33.8 27.6 22.9 22.2 12.6 24.5 19.1 41.9 2001 20.7 31.4 9.2 17.0 14.5 21.2 12.6 24.1 18.9 15.9 17.8 22.1 25.8 18.0 18.1 11.0 21.5 9.1 13.4 2002 21.7 29.6 12.4 23.2 15.0 20.7 22.4 24.8 17.7 19.6 21.4 27.5 24.9 14.5 20.6 12.6 21.2 14.7 8.2 2003 22.3 29.8 14.7 24.4 24.5 24.1 18.7 25.0 16.3 23.0 20.2 21.3 24.7 14.3 17.3 14.2 23.6 10.1 19.0 2004 22.4 28.8 13.6 29.9 17.5 27.4 21.9 22.7 15.4 22.8 19.6 27.9 27.9 14.0 21.2 12.9 24.1 9.6 38.9 50.3 48.4 56.4 26.2 29.0 39.2 40.1 41.8 30.7 32.7 65.8 56.4 70.5 60.9 77.9 72.5 2005 20.4 26.0 12.1 25.5 16.1 28.0 18.4 20.1 18.3 15.1 21.0 27.3 23.8 17.0 15.8 11.6 21.5 15.8 2006 18.2 21.9 12.4 22.5 13.3 24.5 16.2 19.0 18.3 14.7 17.7 25.7 17.8 15.2 16.7 12.6 21.3 12.3 2007 18.2 22.6 14.5 18.4 15.4 22.7 14.6 18.6 16.7 13.0 19.1 22.9 15.5 18.1 14.8 16.9 18.7 19.7 2008 23.9 28.7 21.1 21.2 25.9 35.6 22.9 23.1 21.4 16.7 27.8 26.0 19.7 21.4 24.9 16.9 20.1 18.0 2009 38.2 45.9 33.1 37.6 32.1 47.3 30.3 30.7 38.2 36.4 38.4 39.6 31.4 36.4 33.7 39.5 28.5 32.2 2010 42.1 51.4 30.6 33.0 45.4 54.9 36.6 36.3 44.7 40.4 40.5 44.4 34.8 37.2 35.2 33.6 31.5 36.2 2011 46.1 55.9 44.1 47.9 40.4 52.6 40.0 34.7 47.8 41.9 50.4 51.5 37.9 40.9 47.0 29.1 34.1 49.7 2012 52.0 57.7 40.0 52.5 51.1 54.1 45.4 50.5 52.3 50.1 57.1 59.2 42.0 50.6 49.8 39.8 36.6 56.9
25
References
Aragn, Jorge, Martnez Alicia, Cruces, Jess Cruces and Rocha, Fernando (2012): Las polticas de empleo para jvenes en Espaa. Una aproximacin territorial (Employment policies aimed at young people in Spain. A territorial approach), Ministry of Employment and Immigration, Madrid. European Commission (2010): Recent Developments in the EU-27 Labour Markets for Young People Aged 1529. ILO (2005): Youth: Pathways to decent work, Geneva. ILO (2012): The youth employment crisis: Time for action. Geneva.
26
About the author Fernando Rocha Snchez is a sociologist and Director of Employment and Labour Relations Studies at the 1 de Mayo Foundation in Madrid.
Imprint Friedrich-Ebert-Stiftung | International Dialogue Hiroshimastrae 28 | 10785 Berlin | Germany Responsible: Jrg Bergstermann, Coordinator for Trade Union Programs in Europe and North America Tel.: ++49-30-269-35-7744 | Fax: ++49-30-269-35-9250 http://www.fes.de/gewerkschaften/ To order publications: info.moe@fes.de
The Friedrich-Ebert-Stiftungs International Dialogue Department promotes discourse with partners in Europe, the United States, Canada, Turkey and Japan. In our publications and studies we address key issues of European and international politics, economics and society. Our aim is to develop recommendations for policy action and scenarios from a Social Democratic perspective. This publication appears within the framework of the working line Youth unemployment in Europe. Twelve country studies alongside with other policy papers can be downloaded from our website: http://www.fes.de/lnk/youthunemployment. Project leader: Jrg Bergstermann (joerg.bergstermann@fes.de), project management: Cindy Espig (cindy.espig@fes.de).
The views expressed in this publication are not necessarily those of the Friedrich-Ebert-Stiftung or of the organization for which the author works. This publication is printed on paper from sustainable forestry.
ISBN 978-3-86498-313-9

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STUDY

YOUTH UNEMPLOYMENT IN EUROPE

In times of crisis, the policy of last in, first out is applied

There is too little system to the German transitional system

YOUTH UNEMPLOYMENT IN EUROPE

YOUTH UNEMPLOYMENT IN EUROPE

Reforms bring a more practical approach to school education

YOUTH UNEMPLOYMENT IN EUROPE

YOUTH UNEMPLOYMENT IN EUROPE

Poland: Working poor with a first-class education

66 per cent of Polish employment contracts are fixed-term contracts

YOUTH UNEMPLOYMENT IN EUROPE

A pan-European problem that requires country-specific solutions

Europes Lost Generation

Social exclusion: adult life does not begin

YOUTH UNEMPLOYMENT IN EUROPE

Rate of unemployment in per cent

Youth Unemployment in Spain

FERNANDO ROCHA SNCHEZ November 2012

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

1. Youth Unemployment in Spain: A Diagnosis

1.2 Evolution of Youth Unemployment (20002012)

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

Source: EPA, INE (second quarters, except 2012 = first quarter).

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

1.3 Evolution of Youth Employment in Times of Crisis (20082012)6

10 Real GDP growth YUER (1624) YUER (2529) AUER (3064)

Table 1: Employment by age group in Spain, 2008 and 2012 ('000)

Source: EPA, INE (first quarter).

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

Table 6: Youth employment (1624 years) by citizenship in Spain

1.4 Profile of Youth Unemployment (2012)

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

ISCED 02 ISCED 34 ISCED 56 Total

Source: EPA, INE (first quarter).

0 1624 Males Females 2529

Source: EPA, INE (first quarter), authors calculations.

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

2. Labour Market Reforms: An Overview

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

3. The Challenge of Youth Employment in Spain: Policy Pointers

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

3.1 Short-term Measures

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

3.2 Medium-term Measures

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

Reinforcing career guidance and information services

Specialisation of incentives for job creation

Reinforcing and improving the effectiveness of Public Employment Services

Fostering job stability

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

Reinforcement of training / employment programmes

Reinforcement and improvement of occupational training

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

Strengthening the role of collective bargaining

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN

4. Six Final Points for Reflection

FERNANDO ROCHA SNCHEZ | YOUTH UNEMPLOYMENT IN SPAIN