The Mystery of Spain’s Perpetual Jobs Problem


The article discusses the nature of the High Rate of Sustained Unemployment in Spain. The High Rate of 20% has been attributed to persistence of overly protective labor contracts alongside temporary ones with too few protections , existence of unqualified and unskilled labor force, wide redundancies in the older age group accompanied with less cases of re-entry into employment. This coupled with decline in Aggregate Demand and Investment has deepened the Unemployment problem over the years.

Topics include Unemployment, causes and consequences of Structural and Cyclical Unemployment. Explain using the National output and Labor Market diagrams.

Evaluation will cover use of Demand side and Supply side policies with Government support and Social security expenditure in short term and long term.