Analysis

Nov 24, 2016

Youth Unemployment and Job Insecurity in Spain

Problems and Policy Options

Spain has staggering rates of youth unemployment. The Spanish labor market is so dysfunctional for young people that it is tempting to emulate wholesale the successful experiences of other countries, particularly Germany, where unemployment rates – both for the general population and for youth – have been going down for several years.

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It is well known that unemployment rates in Spain, and especially among youth, are considerably higher than the European average. Moreover, young people who do have jobs generally work under very unstable conditions; most have temporary contracts because they are not able to find permanent jobs. The consequences of this job insecurity – a combination of high unemployment rates, temporary employment, and uncertainty about the professional futures of young people – are dramatic. Across the educational spectrum, young workers in Spain have greater chances of remaining unemployed or getting stuck in a temporary contract for long periods of time, experiencing wage penalties, or being over-qualified for their jobs. The crisis has, moreover, increased this group’s risk of experiencing poverty and social exclusion. This is particularly the case for the so-called NEETs (young people who are “not in education, employment, or training”) and those with migrant backgrounds.

Contents

Youth in Germany, France, and Spain: Three Very Different Experiences

Trends in Unemployment Rates

Temporary Employment and the Structure of the Labor Market

Policy Options: Bridge the Gap between Education and Work; Develop Active Labor Market Policies; Reduce Labor Market Segmentation

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Bibliographic data

Ramos, María, and Carlos Victoria. “Youth Unemployment and Job Insecurity in Spain.” November 2016.

DGAPanalyse 9 (November 2016), 12 pp.

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