Why Spain’s jobless rate remains stubbornly high

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Why Spain’s jobless rate remains stubbornly high
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Spain has the EU’s highest rate of precarious temporary contracts, the highest rate of high-school dropouts and among the highest portions of low-skilled workers

Airbus employees hold a banner reading ‘Everybody is useful’ during a demonstration against layoffs outside Airbus’s offices in Getafe, near Madrid, Spain, on February 21 2020. Picture: AFP/JAVIER SORIANO

The situation remains critical despite years of robust economic expansion in Spain and successive interest-rate cuts that have propped up the broader European economy. It’s been masked by a steady decline in the overall euro-area unemployment rate, which has fallen to the lowest level since 2008. Successive governments have failed to tackle the over-reliance on temporary contracts. The only major, recent attempt to improve labour laws was in 2012, a post-crisis revamp credited with spurring the economic expansion.

“When I think about the future, it’s very bleak,” she said, walking out of an unemployment office in central Cadiz city recently. “In cities where there are more opportunities, the rent is a lot more expensive.”

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