Spain's Unemployed

Status
Not open for further replies.

Godwynn

March to the Sea
Joined
May 17, 2003
Messages
20,502
The Guardian

Spain's unemployed: one in five under 30 still looking for that first job


Tomorrow Jesus, 34, is off to Shanghai. His career in international development ran aground after the Spanish government slashed its budgets. The job, for which he was overqualified, became too irritating. So he's heading to China, where he has Spanish friends, with a return ticket that he hopes he'll not have to use for a few years.

"China is like a very optimistic film. It seems like a place where there are a lot of opportunities," he says.

Very few people of Jesus' age are saying that about Spain. At 43%, Spain's youth unemployment is the highest in the EU by far, and more than double the average. For those aged 16 to 19 the rate is 64% – an 11% increase on the previous year. One in five of those under the age of 30 are still looking for their first job, and almost half (46%) are on short-term contracts of less than 6 months.

Youth unemployment here is higher than in Tunisia and Egypt. It's so high that many young people have to look long and hard to see past it.

When I asked a class at an unemployed training centre who would be prepared to leave the country to find a job they all raised their hands. All said that the majority of their friends were also unemployed.

Outside the unemployment office in the shadow of the Real Madrid stadium, where a queue snakes for 70 metres outside before the venue opens, Victoria, 26, waits patiently in line. It's been half a year since she worked as a receptionist. Since then she's been getting by with the help of her parents. "I want to work in audio-visual communications. But I will take anything. Things are very difficult right now. I hope things are going to get better. But I don't really know how."

Almost every young person I spoke to believed their lives would be harder than their parents.

"This is the least hopeful and 'best education' generation in Spain," says Ignacio Escolar, 35, author of the country's most popular political blog and former editor of the newspaper Publico. "And it's like a national defeat that they have to travel abroad to find work."

Unlike the Spanish emigration patterns of the 1960s and 70s, when low-skilled workers left in search of work, most of those leaving this time are well-educated.

A series on the subject in the autumn by the daily newspaper El País prompted hundreds of letters.

One wrote: "When I was a kid, my parents used to tell me, 'we weren't able to study because we had no money, so you must study to avoid ending up like us'. I did what they said, and today, in my 20s, with a university degree, a masters, and several other qualifications, along with too many grants from big companies, I am unemployed."

Another wrote: "I have a university degree. I have a good job, a good salary. I live in a house with a garden. How can this be? I left Spain when I was 23."

Ignacio Prada, 25, who has two masters degrees, left for London a few months ago to work as a barman. He earns more doing that than he would do in an entry-level job, which would in any case be very difficult to come by.

"I live like a rat there so I can save money and learn English," he says. "To be honest I never tried to get a job here. There are jobs, but the quality is not very high. I have friends who have economics degrees who are working at a cash register. I definitely feel part of this lost generation."

As dramatic as the statistics sound, there is little evidence of a sense of urgency or outrage.

Two weeks ago in Portugal a Facebook group called Desolate Generation staged a 150,0000-strong demonstration in Lisbon with tens of thousands turning out elsewhere in the country. In Greece, Italy and Britain, students have been out on the streets. But Spain's young remain relatively quiet. "When I took part in the general strike last year most of the people involved were quite old," says former student leader, Iñigo Errejón, who is 27.

It is not just the youth that appear docile. A demonstration against the austerity measures while I was in town could not fill the Puerta del Sol, Madrid's central square. Jesus, leaving for a final dinner with his family, and Ignacio, admitting he's homesick, still both say they are optimistic about Spain. So do all but one of the unemployed at the training centre.

Electorally, most expect an increase in voter abstention among young people at the next elections. While British youth invented punk, and black America created hip hop as popular cultural responses to economic crises in previous decades, there seems to be little evidence that resistance is being expressed in other ways beyond trying to forget all about it.

Spain has one of the highest rates of cannabis and cocaine usage among its young in western Europe. The botellón, the social activity for younger people of drinking alcohol in public areas such as the streets, also increased in popularity until recent police clampdowns.

Some on the political left struggle to explain the indifference. "We're very worried about this," admits Cristina Bermejo, a representative of the youth wing of the CCOO union. "People look like they're asleep and the disaffection is also directed at us in the unions."

At the student union 20-year-old Carmen Aldama thinks people are "apathetic". Errejón, 27, believes the young are de-motivated by the consensus in the political culture at a time when the governing Socialist party is implementing cuts. "There is anger, but it's not political anger. In fact it's anger directed against the political class because all the politicians look the same. So it becomes cynicism."

Errejón also thinks that his generation bears the burden of failing to live up to the achievements of its parents' political past. "They say, we are the generation that brought about transition from fascism to liberal democracy. What have you done? What are you doing? We had mass movements. What are you going to be able to teach me if I can fight and defeat a dictatorship?"

But others say that the reason Spanish youth seem so relaxed is because the severity of the situation has been overstated.

"There are two explanations," says Juan Díez-Nicolás, a sociology professor and pollster. "First, there isn't 43% youth unemployment – 20% of the Spanish economy is underground and a large proportion of young people work in it. Second, the family, which, in Spain has been the cushion that has softened the blow of the impact of the economic crisis."

The second point is particularly striking. The notion of a comedy film like the American movie Failure To Launch where the joke hinges on the fact that the central, thirtysomething, character has not moved out of the family home, makes little sense in Spain where 54% of those between the ages of 18 and 34 do still live with their parents. But with a 10% increase in those living at home, the crisis has clearly had an impact.

In many respects the source of Spanish youth's plight is much the same as elsewhere in Europe where the unemployment is twice the general rate, and the crisis has pushed each measurement higher.

"The difference in Spain is related to the productive sector," said Santos Ruesga, economics professor at Madrid's Autonoma University. "Our boom was fuelled by very high levels of construction and tourism. Both are very low-skilled and labour-intensive. When the crisis hit we had a lot of low-skilled people lose their jobs and many of them were young."

Gayle Allard, an economics professor at the IE international business school, says the problem is rigid Spanish labour laws that make it difficult to fire permanent workers. "You have this privileged majority of people on permanent contracts who are very expensive to fire and so have no incentive to be more productive," she said.

"The problem with the youth is that they are coming in from the outside and they can only get temporary contracts, which makes them more vulnerable."

Ruesga disagrees. "Labour laws in Spain aren't very different to anywhere else," he says.

Either way, Spanish unemployment has always been stubbornly high. At the height of the boom it was higher than that in Britain at the depth of the economic crisis.

Education makes a big difference. The ni/ni (neither/nor) group – those neither in full-time education nor employment – are suffering. Among those aged 24 to 29, those with a doctorate are four times less likely to be unemployed than those who left school without qualifications. But with three in every 10 graduates working in a job for which they feel overqualified, even the most fortunate are frustrated.

"It's like there is oil on the streets," says blogger Escolar. "All it needs is a small spark and it could blow."

Was it a mistake for Spain to enter the Eurozone?

Is monetary tightening by the ECB the right thing to do now?
 
Moral of the story: Jesus saves. Jesus has enough to go to China.
 
Spain has two problems. First was that it failed to cool its housing boom. Sure, having its monetary policy out of its control didn't help, but the Spanish government failed to keep it under control. The problem with youth unemployment is indeed rigid labour laws that extend overgenerous benefits and protection to permanent employees, but simultaneously offer almost no protection for temporary employees. So what happens? Old people on permanent contracts keep their jobs at the expense of young people on temporary ones. It's fairly straightforward, and has very little to do with membership of the Euro.

ECB shouldn't tighten. However, to restore its credibility, Eurozone leaders need to stop pissing about and come up with a proper way of restructuring Eurozone sovereign debt, so that the ECB doesn't have to keep funding otherwise bankrupt governments through the back door. There are so many things wrong with the Eurozone's response to the sovereign debt crisis that I can't even be bothered to describe them.
 
ECB shouldn't tighten. However, to restore its credibility, Eurozone leaders need to stop pissing about and come up with a proper way of restructuring Eurozone sovereign debt, so that the ECB doesn't have to keep funding otherwise bankrupt governments through the back door. There are so many things wrong with the Eurozone's response to the sovereign debt crisis that I can't even be bothered to describe them.

Not everyone agrees. I don't know anything about economy, but I have a good memory. Here's a bbc-article from two days ago. BBC asked European economists about the debt crisis. They got 38 answers:

BBC said:
Most - 23 of the 38 - thought the handling of the crisis by the ECB and the European Commission had been satisfactory or better.

http://www.bbc.co.uk/news/business-12905225
 
Meanwhile in the United States...

 
Was it a mistake for Spain to enter the Eurozone?
The Eurozone had nothing to do with it. It's a worldwide problem. The 2007 banking crash scared people away from doing risky things with their money. Guess what, hiring is risky. People are unemployed because employers are afraid to take a chance.

What we're seeing today is not an economic crash. This is exactly what happens when people invest responsibly: everybody's living standard goes down because nobody is willing to do risky things like build a skyscraper that might get knocked down in an earthquake, or hire a slacker who smokes weed. If you wonder why people are reluctant to go into green technology? T. Boone Pickens recently got stung investing in windmill farms.

If it's not profitable to hire, the company that hires will go out of business. Unemployment, in Spain or anywhere else, will not be fixed--ever--until it is less risky and more profitable to hire people. Until that happens? Take a look around you, folks, because this is it. This is how it's going to be.
 
Ruesga disagrees. "Labour laws in Spain aren't very different to anywhere else," he says.
I for one believe him. When showing that much insight and backing it up with evidence, how could I not.

The employment laws are the one thing I've heard over and over again to be the biggest obstacle for improving the situation.
 
There's pretty sharp regional differences in Spain. Whenever you see figures, remember that there's parts of the country 20% above that average, and 10% below it.
 
@CivG: Were you protesting or just sitting on your ass, out of interest?

I don't blame you if you just sat on your ass but y'know.
 
Some on the political left struggle to explain the indifference. "We're very worried about this," admits Cristina Bermejo, a representative of the youth wing of the CCOO union. "People look like they're asleep and the disaffection is also directed at us in the unions."

At the student union 20-year-old Carmen Aldama thinks people are "apathetic". Errejón, 27, believes the young are de-motivated by the consensus in the political culture at a time when the governing Socialist party is implementing cuts. "There is anger, but it's not political anger. In fact it's anger directed against the political class because all the politicians look the same. So it becomes cynicism."

They are idiots. Swallowed bait and hoot the idea that everyone could become upper-middle class just by attending university, despised (and handed over to badly paid immigrants) the unpleasant jobs, and still despise them (these who say they'll take anything only really take clean services). Abandoned the unions, turned their back on politics, allowed without objections a privatization of the economy which was an outright theft of public goods, ignored a growing underclass of legal and illegal immigrants who were exploited... failed to act as stakeholders to defend their own interests - they were too busy getting drunk at university or taking multiple degrees in series. And now they're surprised that their country in in the crapper?
I'm a cynic too. But I saw the writing on the wall long ago. Warned people and was mocked as an old-fashioned dude out of touch with modern times. One cannot turn a tide, so I gave up on trying and took care of myself. The tide will turn when it is spent, and it still has a couple of years to go.

"The difference in Spain is related to the productive sector," said Santos Ruesga, economics professor at Madrid's Autonoma University. "Our boom was fuelled by very high levels of construction and tourism. Both are very low-skilled and labour-intensive. When the crisis hit we had a lot of low-skilled people lose their jobs and many of them were young."

Gayle Allard, an economics professor at the IE international business school, says the problem is rigid Spanish labour laws that make it difficult to fire permanent workers. "You have this privileged majority of people on permanent contracts who are very expensive to fire and so have no incentive to be more productive," she said.

"The problem with the youth is that they are coming in from the outside and they can only get temporary contracts, which makes them more vulnerable."

This shows quite clearly how the public speech about the causes of the crisis in these countries is full of lies. First there was complaining abut how young graduates couldn't find jobs (unemployment way above the mean in the country), then it's about low-skilled workers not having jobs. What gives, they can't both suffer unemployment above the average.

Then they imply that it is "bad" that permanent workers cannot be fired. But immediately afterwords admit that now employed cannot get permanent contracts. They way this lie was used was quite simple: permanent employment is bad because employers will be fearful to hire (no one proved this, mind you). So let's introduce temporary contracts. A few years later: "oh, noes, unemployment and temporary employment in on the rise, we need more "flexible labor laws, to make it easier for workers to he hired on temporary contracts". A few years later: "oh, noes, we have more workers vulnerable due to temporary contracts - let's make temporary contracts even easier"... rinse and repeat... :rolleyes:

Eventually even the dumb proles put 2+2 together and came up with 4. They were being screwed. But by then they had renounced politics, renounced the organization to demand different policies. Individualism and the mistaken belief that everybody was going to magically become educated and right saw to that. So they are now cynics. They are starting feeble attempts at organizing, but are still on the wrong path. Namely, most of those young graduates still see themselves as some upper class denied their "right". And so, through that divide, they are easy to play against the poor who know they are poor and also against the older middle class.
 
The Eurozone had nothing to do with it. It's a worldwide problem. The 2007 banking crash scared people away from doing risky things with their money. Guess what, hiring is risky. People are unemployed because employers are afraid to take a chance.

What we're seeing today is not an economic crash. This is exactly what happens when people invest responsibly: everybody's living standard goes down because nobody is willing to do risky things like build a skyscraper that might get knocked down in an earthquake, or hire a slacker who smokes weed. If you wonder why people are reluctant to go into green technology? T. Boone Pickens recently got stung investing in windmill farms.

If it's not profitable to hire, the company that hires will go out of business. Unemployment, in Spain or anywhere else, will not be fixed--ever--until it is less risky and more profitable to hire people. Until that happens? Take a look around you, folks, because this is it. This is how it's going to be.

It seems to me that there must be some residual structural problem with Spain. Hiring people with quality bachelors degrees isn't much of a risk. They can easily make a return on investment. What concerns me most is that you have so many unemployed young people in Spain, but nobody opening new businesses. It's striking that all of these people are succumbing to their situation instead of doing something about it. There must be something structural that is prohibiting these young adults from entering into business. With so many unemployed people there has to be a massive void for demand. With so much talent it seems like a no brainer. Why wouldn't foreign corporations or business owners seek to set up shop in Spain? I mean, I can see how there are some prohibitive labor laws that may detract foreign businesses from entering into Spain, but if the quality of the education and worker is solid, I'd have to think that it would be a wise decision to seek out their talent.

Does anybody know if Spain has a universal secondary education system?
 
I know a young person from Spain. His problem is that he doesn't own a belt and we can see his pants and arse when he walks around the office.
 
Does anybody know if Spain has a universal secondary education system?

Of course it has. The economic problem in Spain is that its economy is run by a self-satisfied oligarchy of bankers. And they've caused so much damage throughout the last 15 years or so that it won't be corrected soon, even if they lose power. Which they haven't, yet.
The political problems, IMHO, run much deeper. But I'm not spanish, only a neighbor, so I won't give more opinions.
 
Of course it has. The economic problem in Spain is that its economy is run by a self-satisfied oligarchy of bankers. And they've caused so much damage throughout the last 15 years or so that it won't be corrected soon, even if they lose power. Which they haven't, yet.

Okay, just making sure that universal education isn't necessarily the ticket to universal prosperity that some members of this forum purport.
 
Okay, just making sure that universal education isn't necessarily the ticket to universal prosperity that some members of this forum purport.

So how does the fact that unchecked bankers destroy economies change the fact that education helps them? :rolleyes:
 
So how does the fact that unchecked bankers destroy economies change the fact that education helps them? :rolleyes:

If he's point is that it's not enough, he's right, it isn't. In Spain's case it was arguably bad, because it fooled people into not caring about what was going on.
 
The problem is the Euro straight jacket in the backdrop of a housing bubble collapse.
 
Status
Not open for further replies.
Top Bottom