Spain is one of seven European Union (EU) member states where the European Commission (EC) has identified “potential risks” to improving social convergence, according to the Joint Employment Report published on Tuesday by the Community’s executive arm.
The report is part of the autumn package of the European Semester, the framework within which the economic policies of EU countries are coordinated, and analyzes the situation of the labor market, the skills of workers and the social challenges of each member state.
Brussels reiterates that the Spanish labor market faces “significant challenges” despite its solid recovery.
The employment rate in Spain is well below the EU
In this sense, she points out that the employment rate increased to 69.5% in 2022, higher than the 68% in 2019, but adds that it is still “well below the EU average of 74, 6%”, which represents a “critical situation”. .
Regarding the unemployment rate and its long-term component, Brussels says that due to the downward trend it is no longer considered that they are in a “critical situation” but rather that they are in a “weak situation” but in which they are improve.” in 2022. In any case, the EC points out that they remain “significantly” above the European Union average.
It also points out that the proportion of young people not studying, not training and not working improved to 12.7% in 2022, but the EC considers that it remains “under observation” should stay.
It is also noted that youth unemployment remains high, with a particular focus on Melilla, Ceuta and the Canary Islands.
On the other hand, the gender employment gap in Spain is “average”, while the country is among the best performing countries in the community club in terms of the employment gap for people with disabilities.
The gross disposable income of households “per capita” in a critical situation
At the same time, Brussels notes that the growth of household gross disposable income “per capita” remains in a “critical” situation and is still below the 2008 reference level.
Given these findings, Brussels concludes in its report published today that Spain faces “potential risks” in improving social convergence, which requires further analysis. The diagnosis was the same for six other countries: Bulgaria, Estonia, Italy, Lithuania, Hungary and Romania.
“This underlines the importance of balanced wage setting mechanisms, including robust social dialogue and effective collective bargaining in line with national practices,” the commission said.
He added that the “significant shortage” of workers and skills is “hindering economic growth” and warned that if not addressed “properly” it could hamper the green and digital transition.
