labour

Unemployment increased over the third quarter of the year in Catalonia, with 18,800 more people being added to the lists of the Catalan Public Employment Service. By the end of September there were 840,000 people without a job and looking for a new one, 98,400 more jobseekers than a year ago, according to the latest Active Population Survey (EPA), published by the Spanish Statistics Institute (INE). In the whole of Spain, the unemployment rate reached 25.02% at the end of September, with 85,000 more jobseekers registered than three months ago. According to the EPA, Spain has reached an historical high of unemployed people with 5,778,100 individuals recorded.

The German Chancellor is “impressed” with Spain’s reforms. According to Angela Merkel, the reforms are headed “in the right direction”, they need to be pursued “at all government levels” and they will need “time to show their results”, “as it happened in Germany ten years ago” with their structural reforms. Angela Merkel met with the Spanish Prime Minister Mariano Rajoy in Madrid, the day the European Central Bank announced it was buying sovereign bonds. Merkel stated that reforms have to continue “at all government levels”. The Chancellor also defended the European Union as a project guaranteeing peace and prosperity, and the Euro as “our common currency”.

The number of unemployed people increased in Catalonia over the month of August, ending a positive trend of five consecutive months of drops. However, August is traditionally a month with an increase in unemployment, and this August’s has been the lowest increase since 2006.

The trade union UGT has calculated that 478,969 jobs have been destroyed in Catalonia between the June 2007 and June 2012. Furthermore, the union fears a “layoff avalanche” next autumn in the public sector.

The numbers of foreign workers contributing to Social Security in Catalonia reached 400,075 people at the end of July. This figure represents a 2.11% increase compared to a month ago. Seasonal work related to tourism and fruit harvesting caused the number of non-EU workers increase by more than 8,000 people over July.

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.

There were 630,932 people registered as unemployed with the Catalan Public Employment Service. It is the third consecutive month with an unemployment drop. In Spain, unemployment decreased by 30,113 in May, leaving the total number of people without a job and looking for a new position at 4,714,122. In absolute terms, Catalonia is among the Autonomous Communities where unemployment decreased the most in May.

The President of the European Central Bank, whose Governing Council met in Barcelona on May 3rd, praised the Spanish Government’s “significant effort” made in a “very short period of time” to approve structural reforms. However, Mario Draghi, asked Spain “to persevere” in the strategy based on austerity and accomplish further reforms. The ECB’s President emphasised Europe’s need to adopt measures strengthening economic growth but without abandoning the principles of austerity. Draghi recommended continuing to reduce public spending in order to control the deficit. As expected, the ECB is maintaining the interest rate at 1%.

This advisory body dependent on the Catalan Government affirms that two aspects of the Labour Reform Law, recently approved by the Spanish Government, go against the Spanish Constitution. Furthermore, the report also highlights three elements that invade the Catalan Government’s jurisdiction. The four Left-Wing Catalan parties that requested the assessment one month ago are pushing for the reform to be brought to the Constitutional Court. CiU, who runs the Catalan Government, hopes to modify these aspects through parliamentary negotiations.

It is the first time since 2007 that unemployment has dropped in the month of March. In total, at the end of last month there were 638,247 people registered as unemployed in Catalonia. The number of unemployed people decreased throughout Catalonia, especially in Girona and Tarragona provinces. However, in Spain, unemployment increased by 38,769 people, reaching a total figure of 4,750,867 jobseekers.

The General Strike on March 29th ended without significant changes in the Spanish Government’s Labour Reform, but with a clear acknowledgement that there is growing social anger. The strike was unevenly supported in Catalonia. Unions talked about sector strike participation ranging between 97% and 57% and the Catalan Government about strike participations ranging between 24% and 10%. Minimum services worked as planned, without any significant incidents. Demonstrations took place in the main Catalan cities, with the largest in Barcelona. Isolated violent incidents were the only negative parts of what was a relatively calm day.

Representatives from the Quebec Government have organised sessions to advertise job possibilities in their region. They are mainly looking for workers with technical skills, mainly in the sector of civil engineering, healthcare, and IT. The Catalan Government reached an agreement with Quebec to strengthen the professional mobility of Catalan workers. The participation of Catalan companies in the plans for economic development of the Quebecois Government is also promoted.

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 President of the Catalan Government, Artur Mas, has offered Spain’s Prime Minister, Mariano Rajoy; cooperation regards Spain’s structural reforms, such as the Labour Market reform. Mas has not put prior conditions on the table, but only wants to “be able to talk about a new fiscal agreement between Catalonia and Spain”. He said he understands that this is not an “urgent priority for Rajoy”, but it is a “crucial issue” for Catalonia and “an opportunity” for Spain. Mas stressed that his cooperation would not be indefinite, and would have to be renewed in the future. The Catalan President told FAZ about a possible “federation” or “confederation” between Catalonia and Spain.

At the end of last year there were 775,400 people registered as unemployed in Catalonia. The Catalan labour market lost 126,700 jobs over the year, which represents a 4% drop in the percentage of people in employment. In Spain as a whole, the unemployment rate reached 22.85%, with 5.273 million people unemployed.