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SPAIN

GROWTH WITH JOBS

STUDIES ON GROWTH WITH EQUITY

STUDIES ON GROWTH WITH EQUITY

SPAIN

GROWTH WITH JOBS

STUDIES ON GROWTH WITH EQUITY

SPAIN

GROWTH WITH JOBS

inTERnaTiOnaL LaBOUR ORGaniZaTiOn Copyright © International Labour Organization 2014

First published 2014

Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: pubdroit@ilo.org. The International Labour

Office welcomes such applications.

Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. Spain: Growth with jobs/ International Labour Office - Geneva: ILO, 2014

978-92-2-129098-8 (print)

978-92-2-129099-5 (web pdf)

International Labour Office

Spain / crisis / employment / unemployment / productivity / competitiveness / labour market policies/ social dialogue / collective bargaining

First published in 2014

Also available in Spanish: España: Crecimiento con empleo (ISBN 978-92-2-329098-6), Geneva, 2014.
iLO Cataloguing in publication Data The designations employed in ILO publications, which are in conformity with United Nations prac tice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International

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Code: ALI-ATA-IMPR-DISTR

V

FOREWORD

in order to achieve a real and sustainable recovery, macroeconomic and employment goals need to be pursued in parallel. This was highlighted by

51 European Governments, Employers" and Workers" representatives in the

Oslo Declaration adopted by the iLO"s 9th European Regional Conference in april 2013, which stated that “...structural reform and competitiveness, on the one hand, and stimulus packages, investment in the real economy, quality jobs, increased credit for enterprises, on the other, should not be competing paradigms. it is in our common interest to elaborate sustainable approaches in order to promote jobs, growth and social justice". To that end, the iLO has been analysing the situation in a number of crisis-hit European countries since spring 2013 with a view to investigating and presenting policy options for a sustainable and job-rich recovery. in different international meetings, including the G20, the iLO has suppor ted and encouraged a comprehensive approach to the social and economic challenges stemming from the current crisis. The general objective is clear: to combine the pursuit of sound macroeconomic goals with the creation and protection of decent jobs and addressing the needs of the most vulnerable. These issues go to the very centre of the conditions needed to achieve a sus tainable European currency. This new iLO report investigates the specific challenges facing Spain in the aftermath of the crisis. The report emphasises that Spain is in the early stages of the recovery process, and that a number of additional measures could be considered to solidify its gains. in order to achieve the objective of “Growth with Jobs", i hope the report, its findings and the discussions and debate it stimulates will provide useful inputs to the national and European debate on employment and social issues.

Guy Ryder

iLO Director-General VII

ACKNOWLEDGEMENTS

authors of the report This report has been prepared by Verónica Escudero, Santo Milasi, Clemente Pignatti and Johanna Silvander of the ILO Research Department. The authors are grateful for research assistance provided by Cecilia Heuser, Yi Qu, Phoebe Sam and Rachael Singer. Elva López Mourelo, with assistance from Alberto Gamboa Gamboa, provided timely inputs and verified the translation of the report into Spanish. The team of researchers are also thankful to Miguel Ángel Malo of the Universidad de Salamanca, Spain, and Sameer Khatiwada of the ILO Research Department for impor tant contributions during the project"s initial phase. The study has been coordinated by Steven Tobin under the supervision of the Director of the ILO Research Department, Raymond Torres and with guidance from James Howard, Senior Advisor to the ILO Director-

General.

A preliminary draft of the report was shared with the Ministry of Employment and Social Security of Spain and with social partners, namely Confederación Española de la Pequeña y Mediana Empresa (Cepyme), Confederación Española de Organizaciones Empresariales (CEOE), Confederación Sindical de Comisiones Obreras (CCOO) and Unión General de Trabajadores (UGT). The report would not have been possible without the support of the ILO Office for Spain, in particular Joaquín Nieto Sainz, Director of the office in Madrid, and Judith Carreras, Counsellor. Judy Rafferty provided support in relation to the production process of the report. This final report also takes into consideration many of the comments and feedback on earlier versions received from the ILO Regional Office for Europe and Central Asia, the INWORK Branch of ILO as well as from a number of ILO colleagues. This includes Duncan Campbell, Marva Corley, Carlos André da Silva Gama Nogueira, Natan Elkin, Ekkehard Ernst, Colin Fenwick, Maria Laura Fino, Youcef Ghellab, Susan Hayter, Juan Ramón Iglesias, Sebastian Künzel, Stefan Kühn, Massimiliano La Marca, Wolfgang Lutterbach, Alberto Odero de Dios, Rafael Peels, Giorgio Presidente, Uma Rani Amara, Catherine Saget, Daniel Samaan, Daniel Vaughan-Whitehead,

Maria-Luz Vega, and Christian Viegelahn.

IX

TABLE OF CONTENTS

page

FOREWORD

V aCKnOWLEDGEMEnTS Vii

TaBLE OF COnTEnTS

iX

LiST OF FiGURES

Xi

LiST OF TaBLES

Xii

LiST OF BOXES

Xiii

LiST OF aBBREViaTiOnS

XiV

EXECUTiVE SUMMaRY anD pOLiCY RECOMMEnDaTiOnS

1 C H AP TER 1

Economic and labour market performance:

Signs of recovery

15 introduction 15 a. Macroeconomic trends: a rebound in economic activity 16 B.

Labour market performance 24

C.

Concluding remarks 36

References

37
C H AP TER 2

Productivity and competitiveness:

Trends, determinants and possible ways forward

39
introduction 39
a. Factors underlying the trends in productivity and competitiveness 40 B. Tight credit markets: Effects on investments and employment 50 C.

Firms" demography and business environment 55

D. policy considerations 62

References

80
X SPA IN : G ROWTH WITH J O BS C H AP TER 3 R e-orienting labour market policies for improved employment and social outcomes 85
introduction 85
a. Job quality, poverty and labour market polarization: a growing concern 86
B. The role of labour market policies and public employment services in pro moting recovery 101 C. policy considerations 109 appendix 1: Summary of key reforms in Spain 130

References

140
C H AP TER 4 Building recovery through social dialogue and collective bargaining 147
introduction 147
a. Reviving social dialogue as an enabler of recovery 148 B. Collective bargaining: Recent reform process and preliminary impacts 153 C. policy considerations 174

References

186
C H AP TER 5 Towards an employment and social strategy for Spain: Building consensus, complementarities and the role of the I L O 191
introduction 191
a. Building an employment and social strategy: Common areas of action 193 B. implementing an employment and social strategy: The role of social partn ers and the iLO 198

References

200
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