long-term unemployment

The program is aimed at people out of work who are not elegible for unemployment benefits or subsidies and to beneficiaries of the minimum income

The Catalan Government announced on Tuesday a new programme to assist unemployed people aged 45 and over to return to the labour market and find a new job. The Executive has ordered Catalonia's Public Employment Service (SOC) to launch the programme, the details of which will be fine-tuned in the coming weeks. According to the Catalan Minister for Business and Employment, Felip Puig, the plan will have a budget of around €50 million and 30,000 people should benefit from it. Puig highlighted that the number of people registered as unemployed has decreased for 21 consecutive months in annual terms, but there is still a great effort needed to improve the overall high unemployment figures. Furthermore, young people and those over 45 have the greatest difficulty finding a new job.

The Catalan Parliament held on Wednesday a monographic session on poverty, which has increased over the past few years, spurred by the financial crisis. According to a report published by the Red Cross this week, there are 200,000 families in Catalonia which live below the poverty line and since the crisis started, 88 Catalans a day have crossed such a line. With a population of some 7.5 million and a GDP per capita of around €28,000 (similar to the UK's) Catalonia posts a 22.3% unemployment rate and a 26.4% child poverty rate. Opposition parties asked for greater efforts and further measures to fight the poverty increase. The Catalan Government emphasised budget figures and detailed several actions in different areas to show they are tackling the issue. In this vein, the Executive criticised that child poverty stood at 22% in 2006, in prosperity years. Furthermore, they complained about the limited fiscal powers on taxation and public deficit, which seriously reduce spending possibilities.

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).

By the end of March, unemployment in the whole of Spain set a new historical record high with a rate of 27.16% and more than 6.2 million people being without a job and looking for a new one. This represented a quarterly increase of 237,400 individuals and a yearly growth of 563,200 people. In Catalonia, 902,300 people were unemployed by the end of March, 17,100 more individuals than three months previously and 65,300 more than a year ago. This sets a new historical record high for Catalonia too, breaking the previous one just set three months ago with a rate of 23.9% unemployment by the end of 2012. Unemployment increased throughout Catalonia except in the western Lleida province where it has been decreasing over the last year.

According to a report by the trade union CCOO, with the Spanish Government’s last budget adjustment, after the sixth month of being unemployed people will no longer receive an average of €222 per month. The report points out that people aged between 45 and 55 will be the most affected since many are in a long-term unemployment situation and will no longer qualify to receive any subsidies. Cristina Faciaben from the CCOO is convinced that the last series of measures to reduce the public deficit will not achieve its objective, and on the contrary will lead to a worsening of the economic crisis.

Unemployment dropped in July by 784 people, which represents a 0.13% decrease compared to a month ago. It is the fifth consecutive month that the number of unemployed people has decreased in Catalonia, reaching 614,792 jobseekers. In the whole of Spain, unemployment decreased for the fourth month in a row, dropping by 0.6%. Long term unemployment and youth unemployment have decreased in Catalonia. However, compared to 12 months ago, general unemployment has increased by 7.8%. In addition, the number of indefinite new contracts dropped by 1.3% compared to a year ago.

Unemployment in Catalonia reaches a new historical record with 836.900 people registered as out of work. Spain’s unemployment rate at the end of March was 24.44%, reaching a total figure of 5,639,500 jobless people. The Spanish Vice President said on Friday that Spain is living “the harshest moments” of the crisis and that the data show that reforms need to be pursued. The Catalan Government criticised the Spanish Government for reducing the budget for employment policies by 56% due to be implemented in Catalonia in its budget proposal for 2012.

The plan has a €420 million euro budget for 2012 and aims to foster quality education by changing the current system based on subsidising training courses offered by job-placement organisations and municipalities for another model based on framework contracts and grouping the actors involved. The Catalan Deputy Minister for Employment and Labour Relations explained that the new plan would include specific policies aimed at young people, the disadvantaged, as well as for the sectors and territories hardest hit by the economic crisis.

The Catalan Minister for Business and Employment has stressed that the Government’s objective is to reduce unemployment by half by 2014. The plan foresees ten measures, with a special focus on the long-term unemployed. Some of the measures include incentives to SME companies to hire the long-term unemployed, collaborating with private temporary work agencies, enlarging the network of education classrooms and relocating staff from the Catalan Public Employment Service to provide job search council and other direct services.

Some young workers are becoming stuck into long-term unemployment, with little future perspectives. In addition, long-term unemployment has overtaken short-term unemployment.