Jobless in Europe: The wretches of Spain

What kind of a social model is it that leaves half of young people out of work? George Eaton profiles Spain's employment woes.

What kind of social model is it that leaves more than half of young people out of work? In two European Union countries, Greece and Spain, this grim threshold has now been passed. Of the pair, it is the latter that is most striking. In the EU’s fifthlargest economy, youth unemployment stands at 56.1 per cent, a level that would once have been considered unthinkable by those who lived through the post-Franco Spanish “economic miracle”.

The chronic joblessness is largely attributable to the 2008 crash and the austerity subsequently imposed at the behest of Berlin. In the boom years the Spanish economy became dangerously reliant on construction, which at its peak accounted for 16 per cent of GDP and 12 per cent of employment. When the property bubble burst, after house prices had risen by more than 100 per cent in ten years, unemployment immediately surged.

The €27bn of spending cuts and tax rises introduced by the Rajoy government have made a bad situation worse, with the economy falling into a double-dip recession. Keynes’s advice to “take care of unemployment” and let the budget deficit “take care of itself” has been ignored by the austerians of Brussels.

Yet this alone cannot explain Spain’s exceptional youth joblessness, which stood at 18.2 per cent even before the crash. The root of the problem lies in the country’s two-tier labour market, which gives permanent workers huge advantage over their temporary counterparts. Unable to adjust the pay and conditions of long-standing employees established through collective bargaining agreements, companies took to laying off the third of workers on short-term contracts. A report last year by the Bank of Spain’s Centre of Monetary and Financial Studies found that 90 per cent of those who had lost their job since 2007 were in temporary employment. The apparent ease with which short-term work could be found before the crisis, most notably in the property sector, also encouraged the young to drop out of school as early as possible. As a result, 30 per cent of young Spaniards have no qualifications, leaving them unable to compete for high-skilled jobs. The problem is compounded by a welfare system that removes all support from claimants once they find work, however low-paid, prompting some to conclude they are better off remaining on benefits and working in the black economy.

The labour-market reforms introduced by the government, including allowing struggling companies to opt out of collective bargaining agreements and a reduction in the highest level of severance pay (aimed at encouraging firms to take a chance on new workers), may improve the situation at the margins but many are not waiting to find out. More than 280,000 young people left Spain last year in search of work, with Germany, the UK, Argentina and Venezuela the most popular destinations. Thousands of young scientists and academics have departed after a 40 per cent cut in state spending on research and development. It leaves Spain ill-equipped for when recovery comes.

In the meantime, those unwilling or unable to emigrate are left with the melancholy reflection that they are just halfway through what is almost certain to be a lost decade.

An employed mother of four in unfurnished social housing in Bollullos del Condado, Spain. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

This article first appeared in the 19 August 2013 issue of the New Statesman, Why aren’t young people working

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Harriet Harman warns that the Brexit debate has been dominated by men

The former deputy leader hit out at the marginalisation of women's voices in the EU referendum campaign.

The EU referendum campaign has been dominated by men, Labour’s former deputy leader Harriet Harman warns today. The veteran MP, who was acting Labour leader between May and September last year, said that the absence of female voices in the debate has meant that arguments about the ramifications of Brexit for British women have not been heard.

Harman has written to Sharon White, the Chief of Executive of Ofcom, expressing her “serious concern that the referendum campaign has to date been dominated by men.” She says: “Half the population of this country are women and our membership of the EU is important to women’s lives. Yet men are – as usual – pushing women out.”

Research by Labour has revealed that since the start of this year, just 10 women politicians have appeared on the BBC’s Today programme to discuss the referendum, compared to 48 men. On BBC Breakfast over the same time period, there have been 12 male politicians interviewed on the subject compared to only 2 women. On ITV’s Good Morning Britain, 18 men and 6 women have talked about the referendum.

In her letter, Harman says that the dearth of women “fails to reflect the breadth of voices involved with the campaign and as a consequence, a narrow range [of] issues ends up being discussed, leaving many women feeling shut out of the national debate.”

Harman calls on Ofcom “to do what it can amongst broadcasters to help ensure women are properly represented on broadcast media and that serious issues affecting female voters are given adequate media coverage.” 

She says: "women are being excluded and the debate narrowed.  The broadcasters have to keep a balance between those who want remain and those who want to leave. They should have a balance between men and women." 

A report published by Loughborough University yesterday found that women have been “significantly marginalised” in reporting of the referendum, with just 16 per cent of TV appearances on the subject being by women. Additionally, none of the ten individuals who have received the most press coverage on the topic is a woman.

Harman's intervention comes amidst increasing concerns that many if not all of the new “metro mayors” elected from next year will be men. Despite Greater Manchester having an equal number of male and female Labour MPs, the current candidates for the Labour nomination for the new Manchester mayoralty are all men. Luciana Berger, the Shadow Minister for mental health, is reportedly considering running to be Labour’s candidate for mayor of the Liverpool city region, but will face strong competition from incumbent mayor Joe Anderson and fellow MP Steve Rotheram.

Last week, Harriet Harman tweeted her hope that some of the new mayors would be women.  

Henry Zeffman writes about politics and is the winner of the Anthony Howard Award 2015.