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Tag Archives: unemployment

The beginning of a generation with less expectations

In this current economic uncertainty horizon, expectations for citizens seem increasingly small and the forecast for future generations points to be dark. Years of economic crisis and globalization have left winners and losers. Among the beneficiaries are old acquaintances: the economic elite. For example, Branko Milanovic and Thomas Piketty, both economists, have been responsible for alerting about the injustice effects caused. Even though few have informed with the frankness of billionaire Warren Buffett, who in 2011 wrote in The New York Times: “While the middle and lower classes fight for us in Afghanistan, while Americans fight for a living, we, over wealthy people, continue to have extraordinary tax breaks.” Read more of this post


Protected: The Basic Income: Necessary or unnecessary?

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The number of sick people going to Switzerland to commit suicide has been doubled in four years.

611 foreigners went to Zurich between 2008 and 2012 to end their lives.

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Teniendo en cuenta las palabras de Miguel Mora y Carlos E. Cué, ambos columnistas del periódico “El País”, publicado el 12 de noviembre, España bate records en cuanto a paro siendo el más alto de toda la Unión Europea, estos y otros muchos datos sobre el desempleo, y en particular, al juvenil, serán comentamos en este siguiente post. Read more of this post


Unemployment in Spain

Spain is the second country behind Greece, with more unemployment in the EU and the Organization for Economic Cooperation and Development. Unemployment is a problem that occurs in all countries but the extent of unemployment in Spain is particularly high. In Spain, we have an unemployment rate of 26.7% (4,811,383 unemployed) while for example in Italy have an unemployment rate of 12.5%, Portugal 15.7%, France 10.9% and in Germany only 5.2%.


Unemployment in Spain began in 2008 with 2,129,547 unemployed and ended with 3,128,963, representing an annual increase of 999,416 people. This year was particularly hard mainly due to the economic crisis that struck the country and caused practically a million people lost their jobs. The worst month of the year was in October with + 192,658 unemployed.

Spain Financial Crisis

From 2008 to 2013, unemployment has risen from approximately 3,128,963 to 4,811,383, ie 1,682,420 unemployed. A chilling fact that cause worries to all Spanish and every time gets worse.

Pío Moa Banga, cites several consequences of unemployment that qualifies as harmful to both, the unemployed and the population.

PO M~1

  1. The most evident consequence of unemployment is declining incomes of the families affected. A situation of financial difficulty that often goes with it a deterioration of family life and self-esteem of the individual.(Pío Moa Banga, Reflexiones de un ochental)
  2. Criminality. Some people, especially young people in marginal environments, can be pushed to look outside the law, the revenues accruing to them that they can not find employment in the labor market. We talked about activities such as drug trafficking, prostitution, crime …(Pío Moa Banga, Reflexiones de un ochental)
  3. Lack of motivation in education.Many college-age youth are wary that their studies are to serve them for something tomorrow. In fact, it is known that a good portion of university graduates end up working in jobs lower than their educational qualifications, or even tasks that have nothing to do with what they studied.(Pío Moa Banga, Reflexiones de un ochental)
  4. Delay in the age of youth emancipation. The lack of work is for young people the impossibility of leave home, thus delaying their future life plans as they can be independent, get married and start a family.(Pío Moa Banga, Reflexiones de un ochental)

In Spain, with youth unemployment over 50%, it is not surprising that 2 of every 3 young people have to emigrate. Our young people are forced to build a future away.(Contraeconomy, Dos de cada tres jóvenes españoles emigra)

According to the “Report on the State of the Spanish Labor Market” by the job portal InfoJobs, “two out of three Spanish youths seeking employment abroad and one in two is willing to work outside Europe.” He adds that 65% try to find job opportunities mainly in the UK, Ireland and Germany.

A forced migration extremely counterproductive for the country. Spain is experiencing a “brain drain” and they are leaving many well-qualified people.(Contraeconomy, Dos de cada tres jóvenes españoles emigra)



Economic crisis in Spain

The Economic Crisis began in Spain in 2007 and six years later, the situation is still deplorable. Although the latest news are good regarding to 2 years ago, unemployment is one of the variables of greatest concern continues to increased about 26%. The expectations for next year are right optimistic. The Prime Minister claimed that the Spanish economy will grow and therefore, we will soon put an end to this horrible phase and celebrate a new life full of illusion and motivation. Many people no longer believes in anything … We’ll see in two years if what they said was true.

The economic policy makers did not have capacity to deal with the situation becoming increasingly optimists as is reflected in the statements of Zapatero September 2007 and January 2008: ” Spain has entered the Champions League in the world economy” , ” Spain is able to achieve full employment.”The party was in power did not want unclog the bubble that had developed either by naivete or by their own interest and it was very difficult to slow.

The political posts were optimistic without thinking whether it could prevent the housing bubble. There was a demand so great that people kept buying as an investment, which then turned out a failure since it came to a time when everything fell and it demonstrated the overvalued that it had acquired the property.

First, the monetary policy followed by the European Central Bank, since 2001, which kept the reference interest rate at very low levels for the cyclical (PANOECONOMICUS,2011,3,PP.309-328, Francisco Carballo-Cruz), since the other European countries they had a sustainable development to not convenient for have high in interest rates.

The Bank of Spain cautioned that figures were unsustainable and knew that the growth would fall, but the politicians chose to ignore because that supposed to make a change in the economic structure and slow down the growth.(PANOECONOMICUS,2011,3,PP.309-328, Francisco Carballo-Cruz).

Banks were unable to support the economy and gave the increase of the bubble, which could have been avoided:

  1. Improving information on housing prices
  2. Reducing the tax relief housing on income tax: in Spain, having to pay for housing deducts the income statement, which incentives to buying. Therefore if tax relief is reduced, the excessive buying housing is braked.
  3. Increase the pressure inspector on businesses and real-estate agreements.

During Zapatero’s government they took place some economic policy measures in order to revive the economy. It created the Plan E which was considered to give economic support to businesses and families, encourage employment and modernize the economy but this plan financed by public funds came at the hands of public administrations city councils, those who decided about some public works to invest money.


Tourism continues to be the most valued economic variable and the only sector that relies certain stability now and the end of the year. Tourism is a very good source of income since we are a tourist country. One of the advantages which have some countries in Europe are that nowadays despite of not be having the best time, there is business confidence, this is one of the things that we need in order for the tourism sector move on .This means that although they are not earning much money, they are confident that our company has a future.This situation is what makes them consume in the tourism sector.


Respondents ensured that the beginning of the recovery from the crisis will be late 2014 or even after 2015. If this were true, it would be seven years of crisis.

The worst sectors in production and billing: are construction and contracts. However, the indicator with worst performing has, is investment. From the business point of view nobody runs the risk to buy machinery because the bank will not finance and you do not trust that you can get the money you have invested in the machinery. A few years ago, people could buy a house as an investment, nowadays nobody runs the risk since there is sufficient demand for rental.


Spain’s “Lost Generation”

Reporters as Fatima Bañez and Leslie J. López and so many others have used the example of Benjamín Serra Bosh to illustrate Spain’s lost generation due to the lack of job opportunities and the discouraging economic situation. In 2013, the case of Benjamín Serra Bosch has become known all over the world, he is a Spanish guy with two bachelor degrees and one master who works cleaning lavatories in a very wellknown coffee shop in London ( the one with the green logo). He gained thousands of followers through the social networks when he claimed about the lack of job opportunities for young people in Spain, using his own case as an example.

I received distinctions for both my degrees and now I clean S********* in a foreign country” posted Serra on his Twitter account . His message became nearly viral, reaching every corner in the planet and receiving thousands of solidarity messages.

Spain is suffering the deepest economic crisis in its recent history, it is a country where the unemployment rate among young people has reached the terrifying number of 57%,(the total unemployment rate is up to 26%) and where many emancipated youngsters, most of them with at least a degree or higher education, have been obliged to come back to their parent’s house because they couldn’t afford their own place. The number of Spaniards going abroad looking for a job has doubled in the last five years since the economic crisis began, according to official statistics, more than 60,000 people moved abroad during 2012.


Those Spanish people who decide to emigrate searching for better labor conditions and job opportunities have usually two principal destinations, Central and Northern Europe and South America. In one hand, United Kingdom and Germany ( as well as some other northern European countries) attract Spaniards because of the easy conections with the country and the free circulation of people among the european countries. On the other hand, South America has a common language and some of the main emerging economies globally speaking such as Peru, Chile, Panama and Brazil.

They tell we are a lost generation but it is more like we’re a paralyzed generation” said Mario, one of the thousands of people attending the demonstration that took place in Madrid. He explains how the current situation has been caused by politicians who knew that Spanish economy was going to crash because of the real estate bubble, and they did nothing because they were becoming more and more rich every day. Spanish economy was relying so much on construction and that is why we are one of the countries suffering the crisis in a harder way. He claims that Spain is paralyzed and does not know how to react.


This Spanish lost generation is forced to move away from their hometown, overcome language barriers (as we all know, language skills are not one of the most powerful assets that the Spanish average person has) and starting up from the ground in a new place. We are becaming more courageous than ever and taking risks that we had never imagined we would be taking. Our country is losing a huge amount of people, those known as “the lost generation”. This situation is not sustainable in the long term because if there is no young people working in the country, and mantaining the tax income for the government, there will be no money  to afford tomorrow’s retirements.


Jonathan BLITZER ( May 2013)”Spain’s lost generation: Young, jobless and desperate” Retrieved on November 2013

Fátima MARTINEZ/ Leslie J. LOPEZ (June 2013) “Spain’s Lost Generation — The exodus of young Spanish professionals in search of work and a future”  Retrieved on November 2013

Giles TREMLETT “Spain’s lost generation of graduates join wave of migrants in search of jobs” ( Retrieved on November 2013

Ben SILLS (March 2012)”Spain’s Lost Generation Looks Abroad” Retrieved on November 2013