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Spain – Staffing firms want more labour market flexibility

06 August 2012

The Spanish association for large staffing firms (AGETT) said that the government has to continue to invest in labour market policies and “encourage hiring” across the country by “providing the necessary flexibility to companies.”

This comes after the Labour Ministry last week reported that unemployment declined by -0.6% or 27,814 in July from the previous month, taking the total number of registered unemployed to 4.58 million. Unemployment declined in construction and industry while registered unemployment rose in both the services sector and agriculture.

AGETT said despite July’s fall in unemployment, the data “is absolutely negative and very indicative of a deep recession.” The organisation said last July was “the worst in a decade” and warned that once the summer season is over, which has helped increase employment levels, the “difficult situation” in the labour market will become more apparent.  

It therefore urged the government to review labour market policies. “Our labour market needs new measures to stimulate and accelerate the recruitment and placement of workers, while providing the flexibility required to enterprises,” AGETT said.

Spain has the highest joblessness rate in the European Union and an end to the recession is not yet in sight as the economy contracted by -0.4% in the second quarter of the year.  Official statistics also recently showed that joblessness reached a record of 24.63% in the second quarter of the year. 

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