Spain | Towards a more efficient and equitable labor market after COVID-19

Summary

The COVID-19 crisis has brought to light the structural weaknesses of the Spanish labor market. Its lack of efficiency and its duality are some of the main causes of inequality and the lower welfare in Spain compared to other more advanced economies.

Key points

• Key points:
• The economic recovery after the Great Recession made it possible to fix many of its negative consequences through balanced and sustainable growth.
• It has been estimated that as of the end of May, the crisis has caused around 1,290,000 Social Security contributors to lose their jobs.
• The 3 million workers who have been placed on a Temporary Redundancy Plan (ERTE) and the 1.5 million self-employed who have been forced to stop working due to the crisis should be added to this number.
• Without appropriate economic policy measures, the crisis could have permanent effects on the labor market, the level of economic activity, inequality and social welfare.

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