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Spain — Highly sensitive labour market due to strong reliance on temporary employment

04 January 2010

The Organisation for Economic Co-operation and Development (OECD) and the International Monetary Fund (IMF) have respectively predicted that unemployment in Spain will reach 19% and 20% in 2010.

However, Valeriano Gomez, Economist and ex-Secretary General for Employment, told El Pais "I don't believe in the pessimistic hypothesis that Spain will take many years to get out of this economic crisis. There are many good reasons why the labour market will improve in 2010, one of which is the recovery of the European marketplace."

Gomez has researched the economic cycles of the major European economies and has demonstrated that Spain is more sensitive to ups and downs due to her strong reliance on temporary employment. He predicts that, as after previous recessions, Spain will create more and faster employment than other European countries.

"Possibly from 2011 onwards, perhaps even starting in the third quarter of 2010 there could be the beginning of an upwards trend in the labour market." He explained.
Francisco Aranda, President of the Association of Large Temporary Employment Agencies (Agett), said "we have passed the worst part of the cycle but we have not reached rock bottom yet. In 2010 the average unemployment rate will be 19.5%. This means that we will have accumulated between 4 and 4.3 million unemployed in Spain."

In November temporary employment was up by 8.6% compared to the same month in the previous year.



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