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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OK, let's do this: who REALLY won Legs-It? An exclusive investigation

Look, some of you just aren't treating this question with the seriousness it deserves. 

This morning, the Daily Mail front page dared to look past the minutiae of Brexit - can my EU partner still live here? Why is my holiday so expensive? Should we be worried that David Davis looks like a man who's ended up a minister because he lost a bet? - to ask the really big question. 

Yes, indeed. Who is Top of the Tibia? Who shines in the shin department? Which of these impressive, powerful women has lower limbs which best conform to our arbitrary beauty standards? 

In the accompanying article, Sarah Vine (herself the owner of not one, but TWO lower limbs) wrote that the women put on a show of unity with "two sets of hands clasped calmly on the arms of their respective chairs", disdaining the usual diplomatic practice of accompanying discussions about Article 50 with a solemn, silent re-enactment of the Macarena.

Vine adds: "But what stands out here are the legs – and the vast expanse on show. There is no doubt that both women consider their pins to be the finest weapon in their physical arsenal. Consequently, both have been unsheathed." That's right, people: Theresa May has been unafraid to wear a skirt, rather than a pair of trousers with one leg rolled up like LL Cool J. A departure for Mrs May, to be sure, but these are uncertain times and showing off just one calf might see the stock markets plunge.

The prime minister has come to the bold decision that her legs are the "finest weapons in her physical armoury", when others might argue it's the sharp, retractable venom-filled spurs on her fore-limbs. (Oh wait, my mistake. That's the duck-billed platypus.)

As ever, the bien-pensant left is squawking about sexism and avoiding the real issue: who really won Legs-it? Well, there will be no handwringing over how this is a belittling way to treat two female politicians here, thank you very much. We shall not dwell on the fact that wearing a skirt while doing politics is not really remarkable enough to merit a front page, oh no. Instead, we shall bravely attempt to answer that Very Important Question. 

Who really won Legs-it? 

1. David Cameron

We might not know who won Legs-It, but let's be honest - we all know who lost. David Cameron here has clearly concluded that, much like Andrew Cooper's pre-referendum polling results, his legs are best hidden away while everyone politely pretends they don't exist. 

Legs-It Rating: 2/10

2. Michael Gove

Fun fact: Michael Gove's upper thighs are equipped with sharp, retractable claws, which aid him in knifing political rivals in the back.

Legs-It Rating: 8/10

3. David Davis

Mr Davis's unusually wide stance here suggests that one leg doesn't know what the other is doing. His expression says: this walking business is more difficult than anyone let on, but I mustn't let it show. Bad legs are better than no legs.  

Legs-It Rating: 6/10

4. Boris Johnson

Real talk: these legs don't really support Boris Johnson, they're just pretending they do to advance their career. 

Legs-It Rating: 6/10

5. George Osborne

Take in these long, cool pins. These are just two out of George Osborne's six legs. 

Legs-It Rating: 9/10

6. Liam Fox

In the past, Liam Fox has faced criticism for the way his left leg follows his right leg around on taxpayer-funded foreign trips. But those days are behind him now.

Legs-It Rating: 10/10

7. Nigel Farage

So great are the demands on the former Ukip leader's time these days, that his crotch now has a thriving media career of its own, independent from his trunk and calves. Catch it on Question Time from Huddersfield next month. 

Legs-It Rating: 7/10

Conclusion

After fearlessly looking at nine billion photos of legs in navy trousers, we can emphatically conclude that THEY ARE ALL BASICALLY THE SAME LEG. Life is great as a male politician, isn't it?

I'm a mole, innit.