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Spain – Increase in temporary employment can boost economy

14 June 2013

Asempleo, the largest association of private employment agencies in Spain, announced that more temporary employment opportunities would reduce unemployment and improve the efficiency of the labour market.

Asempleo spokesman, Lorenzo Rivarés said: “Any measure that facilitates an increase of temporary employment will benefit the state, the efficiency of companies, improve access to work for the unemployed.”

Using an economic model, Asempleo projected the outcome if Spain were to have the same penetration rate (temporary agency workers as a proportion of all workers) as other European countries. Temporary employment would increase to 1.75% of the total workforcefrom its current level of 0.5%. This would equate to more than 400,000 additional workers and unemployment would fall by -3.2% (currently standing at 27%).

The association said the reduction in public spending on unemployment benefits would be €1.9 billion. Revenue would increase by €3.1 billion as a result of income tax, social security and VAT. In total the effect on the public finances is estimated to be an increase of €8.4 billion.

Lorenzo Rivarés added: “In this time, when you want temporary employment agencies to collaborate with public employment services they should enjoy social recognition and be valued as real tools of corporate external flexibility.”


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