The spanish labour market reforms

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  • Publicado : 21 de noviembre de 2010
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The welfare state is causing a gradual life expectancy increase and, consequently, the Europe's population ageing. What it has been called a demographic crisis as the labour force is not able tosupport the economical load of the social services expenditure. This deficit is threatening seriously the pensions system as we know it nowadays. EU is reacting by promoting a postponement of theretirement age in each member countries.

Nowadays, the retirement age varies between 57 (Hungary) and 65 years old (Germany, UK, Spain...), depending on the country policies, while the average age of theEuropean citizens varies from 61 years old for men and 63 years old for women. Several voices are claiming that retirement age should be linked to life expectancy to warranty the welfare state.European governments are trying to get this way despite of the popular pressure. Spain has initiate its reform, that includes the postponement of the retirement age from 65 to 67 years old, and theextension of the reference period for calculating retirement benefits from the 15 last years before retiring to the last 20 years.

They have try to apply a common policy in a country with a particularand difficult environment :
- Spain currently has a 20,8% unemployment rate, the higher in the EU and far from its neighbours France (10,0%) and Portugal (10,6%). And really far from Netherlands(4,4%).
- Unemployment rate for younger population (less than 25 years old) raise up to 42,5%. As the retirement age increases, this will reduce opportunities for younger workers trying to get their firstjob. And even it will cause an educational inflation.
- In Spain about 245,000 million euros are evaded each year, almost the 23,3% GDP. This amount would pay all pensions for three years.
- Spainsocial services expenditure raises up to 41,1% GDP, one of the leasts in Europe.
- GDP per habitant is about 12% lower than the European average and 20% lower than USA. It is really difficult to...
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