employment

Speaking to the Economic Affairs Committee of the European Parliament, the European Commissioner for Employment, Lázló Andor, said that Spain should profit from its decentralised organisation to help fight youth unemployment. He suggested that the rest of Spain’s Autonomous Communities should follow the examples of Catalonia and Navarra to improve employment levels among youngsters. The European Commissioner said that Spanish authorities should take note of the plans launched by Catalonia and Navarra, where the youth unemployment situation “is better than the national average”. However, despite these levels being lower than in most of Spain, youth unemployment in Catalonia is worryingly high, at more than 53% in July.

The Catalan Government has presented its budget proposal for 2014, which posts a 1% deficit, representing a 35.5% annual reduction and amounting to €1.98 billion, in line with the 2014 deficit targets imposed by the Spanish Government. The budget prioritises healthcare, education and social policies, which represent 71% of the total non-financial spending. Non-financial spending grows by 0.2% and reaches €20.30 billion, while the total spending amounts to €29.31 billion. The Catalan Finance Minister stressed that spending had not been reduced this year since in the last 3 years it had already dropped by 22%. Budget cuts “have reached their limit”, as otherwise “social cohesion” and “the Welfare State” would “be at risk” he said. In 2014 the Catalan Executive will spend the same per inhabitant as it was doing in 2004 taking into account inflation (€1,901).The adjustment for 2014 focuses on increasing revenue by €3.2 billion, mostly through new taxes (€910 million) and the sales of assets and privatisations (€2.32 billion). On top of this, the Catalan Government forecasts a 0.9% economic growth for 2014, leaving behind the recession of 2012 (-1.2%) and 2013 (-1.1%).

The Catalan Government has forecasted a 0.9% economic growth for 2014 in its budget proposal for next year, leaving behind the recession of 2012 (-1.2%) and 2013 (-1.1%). The positive figures are mostly due to the strength of the export sector – which will continue to improve its results. The main factor slowing down growth will be the internal demand, which will continue to decrease although it will do so at a lower pace. In addition, the Catalan Executive believes the unemployment rate will decrease and reach 23.1% by the end of the year. It is expected 2013 will end with a 23.7% unemployment rate, higher than the 22.6% rate registered at the end of 2012.

However, in annual terms, Catalonia registered a fourth consecutive drop in unemployment figures with a 1.93 % decrease compared to October 2012 and 12,474 fewer jobseekers. By the end of October 2013, 633,832 people were registered as unemployed at the offices of the Catalan Public Employment Service (SOC), meaning a 2.08% increase since the month of September, with 12,921 extra people unemployed. These latest figures, which were released by the Spanish Ministry of Employment and Social Security, also indicate a third consecutive month of growth in unemployment. In the whole of Spain, registered unemployment also increased for the third consecutive month.

In Catalonia, the unemployment rate decreased by 32,500 people to reach 22.84%. The Spanish Labour Force Survey has recorded two consecutive semesters of decrease in the unemployment figures after new highs had been reached in early 2013. Catalonia is currently leading the country in terms of unemployment reduction: on the Spanish Scale, the latest figures indicate a drop in 72,800 people while the rate is set at 25.98%.

The Barcelona-based nationalised Catalunya Banc has reached a first deal with unions on the announced mass lay-off. The deal includes voluntary redundancies instead of early retirements, and the possibility for 401 workers over 50 years old to leave the company. The agreement was reached in the early hours of Wednesday morning, after a long day of talks on Tuesday. Catalunya Banc runs the banking business of the nationalised savings bank CatalunyaCaixa, which will be sold in the coming months after a comprehensive restructuring process. Talks are still ongoing in order to close a definitive deal and the definitive agreement has now to be ratified by the bank’s Board.

At Spanish level, unemployment increased both in monthly and annual terms. Catalonia is the Autonomous Community with the largest annual unemployment drop in absolute terms and the second highest in relative terms. The number of people registered as unemployed in Catalonia at the end of September dropped by 11,546 individuals compared to figures from a year ago, representing a 1.83% annual decrease. However, in monthly terms, registered unemployment increased by 1.51%, with 9,243 more jobseekers. September is a month with a traditional unemployment increase due to the end of summer season contracts. Last September’s unemployment increase was the lowest since 2008.

Nils Schmid, Vice President of Baden-Württemberg and regional Minister for Finance and the Economy, said in an exclusive interview with the CNA that Catalans are the ones who have to decide whether they want to remain within Spain or to become independent. This process should “of course […] be based on a referendum”. The Leader of the Social-Democrats (SPD) in this state also added that his party is proposing to include the possibility of holding referendums at national level in Germany, which is currently not envisaged by the German Constitution. However, he “cannot imagine” an independence referendum for Baden-Württemberg. On other issues, Schmid pointed out that “fiscal consolidation is not enough” and has to come with “structural reforms” and policies to stimulate growth. He also welcomed Catalans who are going to Germany to find job opportunities.

Following a decade of significant increases in the amount of foreign nationals in Catalonia, it appears that many are beginning to leave as job opportunities dry up. In 2000, the percentage of foreign nationals living in Catalonia was 2.9%, while just over a decade later in 2011 this figure had increased to 15.73%. However, in the past couple of years the amount is beginning to reduce: between 2009 and 2013, 44,000 foreign nationals left Catalonia. According to the Spokesperson of non-governmental organisation SOS Racisme, Jose Peñín, immigrants are leaving as “they have less stable contracts and work in more abusive conditions”.

The number of unemployed people in Catalonia has decreased by 1.8% this August compared to the same month of 2012, with a reduction of 11,224 unemployed. The figures, released by the Spanish Ministry of Employment and Social Security, do however reveal that between July and August the number of unemployed people did in fact increase by 0.2%; although this is said to be because of temporary summer work coming to an end. According to the Catalan Secretary of Employment and Labour Relations, Ramon Bonastre, the 1.8% reduction illustrates that the economy is on the “right tracks”. However, he does admit that it is still an “insufficient” amount.

The General Workers Union (UGT) issued a report stating that the Catalan economy experienced 567,099 job losses between 2007 and 2013. The figure represents a reduction of 16.86% on the total number of jobs that existed in Catalonia 6 years ago. While presenting the report, the UGT’s Secretary for Union Policy, Camil Ros, warned that figures do not show “a recovery of job creation”. Ros criticised the Spanish Government for “lying” and presenting macroeconomic figures in a way that “do not correspond to reality” since there are no signs of economic recovery. “At most, the job reduction has slowed down [its pace]”, he added.

By the end of July there were 6,859 fewer people registered at the Catalan Public Employment Service (SOC) than a month ago, which leaves the total number of registered unemployed individuals at 610,429. The current amount of jobseekers is now the same level as September 2011. Unemployment levels have been decreasing in Catalonia for the last five consecutive months. In addition, last July’s drop is the most significant reduction in this month of the year since 2010. In the whole of Spain, the unemployment rate decreased by 1.36%, with 64,866 fewer people registered at the Public Employment Service offices. This means that by the end of July there were 4,698,814 individuals registered as unemployed in Spain. The Catalan Government states that, if the trend is kept during the second semester, the economic crisis would have reached “its lowest level” earlier this year.

By the end of June, there were 873,000 people in Catalonia without work and looking for employment, according to the latest Active Population Survey (EPA). This represents 29,300 fewer individuals than 3 months ago, which is the highest unemployment reduction in the second quarter of the year since 2002. However, employment levels have only increased by 11,800 people, which means that this year Catalonia has experienced the lowest increase in job creation for this period of the year since 1998. The Catalan unemployment rate is now 23.85%, while the Spanish average is 26.6%. In the whole of Spain, the number of people unemployed decreased by 225,200, which means that the total number of unemployed people is now below the psychological landmark of 6 million individuals (5,977,500).

The Catalan Parliament has devoted a two-day plenary session to debate the youth unemployment problem and how it could be reduced. According to the latest Active Population Survey (EPA), the youth unemployment rate in Catalonia reached 52.7%. This means that 1 out of 2 youngsters between 16 and 24 years old who want to work cannot find a job. Around 151,000 youngsters are unemployed in Catalonia; 64% of them worked in the service sector and 17% have never worked. The Catalan President, Artur Mas, asked to manage the proportional share of the European Union’s funds allocated to fight youth unemployment in Spain, since the Catalan Executive holds the competences.

The Workers Commissions trade union (CCOO) has issued a study calculating that 595,000 jobs have been lost in Catalonia since 2008. Furthermore, the number of unemployed people has increased by 428,000 individuals. The study also revealed that the active population was reduced by 85,900 people (-2.3%) between 2011 and the last quarter of 2012. The Socio-Economy Secretary of CCOO said at the presentation of the study that “there are no objective indications of a short-term recovery of the economy or employment levels”.