Spain: Economy, Employment, Social Policy, and Public Services
Economy and Employment in Spain Today
The Spanish economy in 2007 remained among the most dynamic in its environment, recording GDP growth of 3.8%, nine tenths above the EU average. However, it started to show a slowdown in the major factors that had sustained economic growth: consumption expenditure by households and the construction sector. Initially, more moderate economic growth was forecast, possibly also more sustainable in the medium and long term. That picture changed substantially with the onset of the U.S. mortgage crisis in summer 2007 and its transfer to the international arena. Since that time, restrictions were placed on access to credit, the confidence of economic agents deteriorated, and prices of equity and property assets moderated. This, coupled with other risk factors, has caused growth forecasts for the Spanish economy to decline.
Social Policy and Employment in the Lisbon Treaty
The Lisbon Treaty, signed by all 27 member states of the European Union on 13 December 2007, incorporates many developments affecting intensively the three major areas of rights, institutions and decision-making procedures, and policies of the Union. There are substantial changes in the field of employment and social policy. Ideas are maintained regarding a coordinated employment policy and the important role given to dialogue and social partner negotiation. Measures with social content, such as equality between men and women, promoting employment, and combating social exclusion, should be noted. In the field of social policy, there is a commitment to dialogue between the European social partners and the tripartite social summit for growth and employment, also for its contribution to social dialogue between the institutions and Member States.
Spain’s Plan for Economic and Job Stimulation (Plan E)
In Spain, the financial crisis led to recession in the last quarter of 2008 and the first quarter of 2009, a situation which is seriously affecting our labor market. Among the measures that our country is developing to try to alleviate this situation is the decree on urgent measures for the maintenance and promotion of employment and the protection of the unemployed.
Public Employment Services in Spain
Employment policy is defined as all decisions taken by the State and the Autonomous Communities aimed at developing programs and measures to achieve full employment, quality employment, balance labor supply and demand, reduce unemployment, and provide adequate protection in situations of unemployment. The National Employment System consists of the State Public Employment Service and the Public Employment Services of the Autonomous Communities.
The State Public Employment Service
This is a complex autonomous agency of the State General Administration under the Ministry of Labor and Immigration, through the Secretariat General for Employment, which also manages and controls unemployment benefits. It directly manages grants for active employment policies financed from national employment funds and reserved appropriations, targeting programs that:
- affect an area greater than that of an autonomous community;
- require State cooperation due to exclusive jurisdiction;
- facilitate the occupational integration of immigrants and control migration flows;
- promote stable employment contracts;
- favor the conversion of temporary contracts to permanent ones or unemployed individuals to self-employment, among others.
Public Employment Services of the Autonomous Communities
These services act as labor mediation services and manage active employment policies transferred by the State, with due cooperation from local corporations. These Public Employment Services and the State Public Employment Service will participate in developing the proposed Annual Work Program of the National Employment System for approval by the Sectoral Conference on Labor and subsequent execution in their respective territories. Public Employment Services of the communities will be equipped with governing bodies and structure to provide service to citizens and will involve business and labor organizations. They will be financed from the budgets of the autonomous regions and can also count on European funds.