NAP-Inclusion Annex I Diagnosis of the situation of poverty and social exclusion in Spain. Main tendencies.

Transcription

1 NATIONAL ACTION PLAN ON SOCIAL INCLUSION OF THE KINGDOM OF SPAIN Annex I Diagnosis of poverty and social exclusion in Spain

2 INDEX 1 INTRODUCTION EMPLOYMENT POVERTY AND LABOUR SITUATION UNEMPLOYMENT AND EMPLOYMENT BY AGE GROUPS AND GENDER UNEMPLOYMENT AND EMPLOYMENT BY EDUCATION/TRAINING ACHIEVEMENT AND GENDER LONG-TERM UNEMPLOYMENT THE WORKING POOR Underemployment Employment temporality Part-time employment Work intensity REGIONAL COHESION IN EMPLOYMENT SOCIAL EXCLUSION AND POVERTY ECONOMIC POVERTY The gender and age dimension Composition of households Poverty and housing Income distribution EDUCATION/TRAINING ACHIEVEMENT HEALTH FAMILY SOLIDARITY SUPPORT ACCESS TO NEW TECHNOLOGY THE SPANISH POPULATION AND VULNERABLE GROUPS THE ELDERLY THE DISABLED

3 6.3 FAMILIES IN A SITUATION OR AT RISK OF EXCLUSION CHILDREN IN A SITUATION OR AT RISK OF EXCLUSION DRUG ADDICTION AIDS VICTIMS THE IMMIGRANT POPULATION ASYLUM SEEKERS AND REFUGEES THE PRISON POPULATION THE SPANISH ROMA POPULATION WOMEN IN A SITUATION OR AT RISK OF EXCLUSION: GENDER VIOLENCE THE HOMELESS

4 Graph and Table Index Graph 1. RATES OF EMPLOYMENT BY AGE GROUPS AND SEX, I/2005 AND I/2008, (%)...15 Graph 2. RATE OF EMPLOYMENT BY EDUCATION/TRAINING ACHIEVEMENT AND DIFFERENTIAL, I/2008 (%)...18 Graph 3. POPULATION BELOW THE RISK-OF-POVERTY THRESHOLD, BY AGE GROUPS, (%)...37 Graph 4. PUBLIC EXPENDITURE ON EDUCATION 2005 (% OF THE GDP)...45 Graph 5. EDUCATIONAL ACHIEVEMENTS OF THE POPULATION OVER 16, PER AGE GROUPS, I/ Graph 6. HEALTHY LIFE EXPECTANCY AT 65 YEARS OF AGE (IN YEARS), Graph 7. EVOLUTION OF THE POPULATION BY AGE (THOUSANDS OF PERSONS) AND RATES OF DEPENDENCY (SCALE ON THE RIGHT), Graph 8. FOREIGNERS WITH REGISTRATION CERTIFICATE OR RESIDENCE CARD IN FORCE BY CONTINENT OF ORIGIN (%)...72 Graph 9. FOREIGN RESIDENTS IN SPAIN BY AGE, (%)...73 Graph 10. FOREIGNERS WITH REGISTRATION CERTIFICATE OR RESIDENCE CARD IN FORCE BY AUTONOMOUS COMMUNITY OF RESIDENCE Graph 11. EVOLUTION OF THE PRISON POPULATION BY GENDER Graph 12. EVOLUTION OF THE PRISON POPULATION BY NATIONALITY AND SHARE OF FOREIGNERS OVER THE TOTAL PRISON POPULATION (SCALE ON THE RIGHT), Graph 13. WOMEN KILLED BY THEIR PARTNER OR EX-PARTNER, BY AUTONOMOUS COMMUNITY, 2007 (IN NUMBER OF PERSONS)...81 Table 1. POPULATION OVER 16 YEARS OF AGE BELOW THE RISK-OF-POVERTY THRESHOLD ACCORDING TO ECONOMIC ACTIVITY AND SEX, (%)10 Table 2. POPULATION OVER 16 YEARS OF AGE BELOW THE RISK-OF-POVERTY THRESHOLD ACCORDING TO ECONOMIC ACTIVITY, IN SPAIN AND THE EU, (ANNUAL AVERAGE - %)...12 Table 3. POPULATION LIVING IN HOUSEHOLDS WHERE NONE OF THE MEMBERS ARE IN EMPLOYMENT, BY AGE, (AS A % OF THE AGE GROUP)...13 Table 4. RATES OF UNEMPLOYMENT BY GENDER AND AGE GROUP (%)...14 Table 5. DIFFERENTIAL BETWEEN RATES OF EMPLOYMENT BY GENDER AND AGE GROUP (IN PERCENTAGE POINTS)...14 Table 6. RATES OF UNEMPLOYMENT BY EDUCATION/TRAINING ACHIEVEMENT AND SEX (%)...16 Table 7. RATES OF LONG AND VERY LONG-TERM UNEMPLOYMENT, BY GENDER (%).21 Table 8. RATES OF LONG AND VERY LONG-TERM UNEMPLOYMENT, BY GENDER, IN THE EU-15 AND THE EU-25 (ANNUAL AVERAGE - %)...22 Table 9. UNDEREMPLOYED PERSONS, BY GENDER (THOUSANDS OF PERSONS)...23 Table 10. PROPORTION OF UNDEREMPLOYED PERSONS, BY ECONOMIC SECTOR, (AS A % OF THE TOTAL NUMBER OF OCCUPIED PERSONS)...24 Table 11. SALARY EARNERS BY GENDER AND TYPE OF CONTRACT OR LABOUR RELATION Table 12. PERCENTAGE DISTRIBUTION OF SALARY EARNERS BY LENGTH OF CONTRACT AND AGE GROUP (%)

5 Table 13. PERSONS IN PART-TIME EMPLOYMENT, BY GENDER (THOUSANDS OF PERSONS)...26 Table 14. PERSONS IN PART-TIME EMPLOYMENT, BY GENDER, IN THE EU-25, EU-15 AND SPAIN IN (%)...26 Table 15. HOUSEHOLDS BELOW THE RISK-OF-POVERTY THRESHOLD AFTER TRANSFERS BROKEN DOWN BY WORK INTENSITY OF HOUSEHOLD, (%)...28 Table 16. HOUSEHOLDS BELOW THE RISK-OF-POVERTY THRESHOLD ACCORDING TO WORK INTENSITY OF HOUSEHOLD, 2006 (AS A %)...29 Table 17. RATES OF EMPLOYMENT BY AUTONOMOUS COMMUNITY, BY GENDER (AS A % OF THE POPULATION OVER 16 YEARS OF AGE)...30 Table 18. RATES OF UNEMPLOYMENT BY AUTONOMOUS COMMUNITY (AS A % OF THE ACTIVE POPULATION)...31 Table 19. RISK-OF-POVERTY THRESHOLD (IN EUROS)...32 Table 20. POPULATION BELOW THE RISK-OF-POVERTY THRESHOLD...34 Table 21. POPULATION BELOW THE RISK-OF-POVERTY THRESHOLD AT A SPECIFIC MOMENT IN TIME, (ANNUAL AVERAGE AS A %)...33 Table 22. POPULATION BELOW THE RISK-OF-POVERTY THRESHOLD, IN SPAIN AND THE EU (ANNUAL AVERAGE AS A %)...35 Table 23. LOW-INCOME RATE BEFORE SOCIAL TRANSFERS (EXCLUDING ALL SOCIAL TRANSFERS) (%)...35 Table 24. RELATIVE GAP IN THE AVERAGE LOW INCOME (AS A % OF LOW-INCOME THRESHOLD)...36 Table 25. POPULATION OVER 16 YEARS OF AGE BELOW THE RISK-OF-POVERTY THRESHOLD, BY AGE AND SEX IN 2006 (%) Table 26. POPULATION BELOW THE RISK-OF-POVERTY THRESHOLD BY TYPE OF HOUSEHOLD, (%)...39 Table 27. POPULATION BELOW THE RISK-OF-POVERTY THRESHOLD BY TYPE OF HOUSING TENURE (%)...40 Table 28. INEQUALITY IN INCOME DISTRIBUTION...41 Table 29. PEOPLE WHO HAVE LEFT SCHOOL EARLY, PER GENDER (YEARLY AVERAGE - %)...44 Table 30. ACADEMIC ACHIEVEMENT OF THE POPULATION PER AGE IN THE FIRST QUARTER 2005 AND THE FIRST QUARTER 2008 (% OF THE POPULATION OVER 16 YEARS AND VARIATION IN PERCENTAGE POINTS)...46 Table 31. RATE OF STUDENT AGE-ADEQUACY (% OF THE TOTAL NUMBER OF STUDENTS OF EACH AGE)...48 Table 32. POPULATION BELOW THE POVERTY RISK THRESHOLD PER LEVEL OF EDUCATION (%)...49 Table 33. LIFE EXPECTANCY AT BIRTH, BY GENDER (IN YEARS)...49 Table 34. PERSONS ABOVE 16 YEARS OF AGE ACCORDING TO HOW THEY RATE THEIR STATE OF HEALTH, BY AGE AND SEX, 2006 (%)...51 Table 35. PERCEPTION OF STATE OF HEALTH, IN SPAIN AND THE EU-25, 2005 (%)...52 Table 36. PERSONS ABOVE 16 YEARS OF AGE BY ANNUAL HOUSEHOLD INCOME AND HOW THEY RATE THEIR STATE OF HEALTH IN 2005 (%)...53 Table 37. ICT EXPENDITURE, (AS A % OF THE GDP)

6 Table 38. AVAILABILITY OF PC IN HOUSEHOLDS AND DOMESTIC ACCESS TO INTERNET IN SPAIN AND THE EU, (AS A % OF HOUSEHOLDS)...55 Table 39. PERSONS BY SEX, AGE AND TYPE OF ICT USE IN 2007 (AS A % OF THE TOTAL POPULATION)...56 Table 40. POPULATION ABOVE 65 YEARS OF AGE...58 Table 41. GENERAL RATE OF DEPENDENCY AMONG THE POPULATION BELOW 16 YEARS OF AGE AND ABOVE 65 YEARS OF AGE (%)...59 Table 42. FUNCTIONAL DEPENDENCY BY SEX AND AGE GROUP. POPULATION AGED 65 AND OVER IN 2006 (%)...60 Table 43. EMPLOYMENT CONTRACTS ENTERED INTO BY DISABLED PERSONS IN 2006, BY GENDER, AGE AND TYPE OF WORKING HOURS...62 Table 44. SINGLE-PARENT FAMILIES, BY GENDER AND MARITAL STATUS OF THE PERSON OF REFERENCE, IV/ Table 45. SINGLE-PARENT FAMILIES, BY GENDER AND ECONOMIC ACTIVITY OF THE PERSON OF REFERENCE, IV/2006-IV/ Table 46. CHILD VICTIMS OF VIOLENCE IN THE FAMILY ENVIRONMENT (IN ABSOLUTE VALUES AND PREVALENCE FOR EVERY 1000 MINORS)...65 Table 47. DRUG CONSUMPTION IN SECONDARY EDUCATION BY FREQUENCY, TYPE OF PSYCHOACTIVE SUBSTANCE, PERIOD AND AGE...67 Table 48. EVOLUTION OF NUMBER OF AIDS CASES IN SPAIN AND INCIDENCE RATE OF AIDS PER MILLION INHABITANTS...69 Table 49. ASYLUM SEEKERS IN SPAIN, Table 50. WOMEN VICTIMS OF GENDER VIOLENCE PERPETRATED BY A PARTNER OR EX- PARTNER, BY AGE GROUPS,

7 1 INTRODUCTION Last year, 2007, the main developed countries saw significant changes in their economies. After registering high rates of growth and enjoying a generalised economic boom, the economic cycle has taken a change of course. The financial crisis sparked off in the summer of 2007 in the USA has intensified adjustments in sectors that have traditionally contributed the most towards GDP growth, such as the real estate sector in Spain. In the international context, the rising price of raw materials, such as petrol, cereals, metals, etc., have heightened the effects of the financial turbulences in the production, services and retail sectors. The GDP of the Spanish economy has continued to grow at a faster pace than that of its neighbouring countries, although it began to decelerate in the third quarter of 2007, shifting from annual growth rates of 3.9% in 2006, 4.1% in the first quarter of 2007, to 2.7% in the first quarter of According to the report, Regional Accounting of Spain (CRE-2000), dated March 2008, Spain s income per capita stood at 23,396 Euros in 2007, compared with the European average of 24,700 Euros (EU-27). Although still slightly below the European average, the last few years have seen a narrowing gap between Spanish and European incomes as a result of a thriving Spanish economy that has been growing at a faster pace than those of neighbouring countries. The Basque country registered the highest income per capita in the Spanish territory with 30,599 Euros, whilst Andalucía and Extremadura registered the lowest, 18,298 and 16,080 Euros, respectively. Last year, 2007, the regions with the highest growth were Aragón, Castilla-La Mancha, Galicia and La Rioja. The regions with the lowest growth were Asturias, Comunitat Valenciana, Catalunya, Melilla and Castilla-León. Compared with the EU-27, in Spain there were 7 Autonomous Communities registering incomes per capita above the EU-27 average (the Basque Country, Madrid, Navarra, Catalunya, Aragón, the Balearic Islands and La Rioja) whist the rest of the Autonomous Communities and Autonomous Cities of Ceuta and Melilla stood below that European average. In the Spanish labour market the employment figures for 2007 were very encouraging. The unemployment rate fell to a minimum of 7.95% and the number of unemployed persons to thousand. However, this situation began to change in the last quarter. The year ended with an unemployment rate of 8.60% and with thousand persons unemployed. In the year as a whole, the Spanish economy generated 475,100 jobs. The data from the Labour Force Survey of IT2008 confirms a deteriorating labour market. In the first quarter of 2008, the unemployment rate increased to 9.6% and the number of unemployed persons to thousand

8 As regards prices and salaries, Spain has been registering higher rises than its neighbouring countries, both in terms of inflation, which in the early months of 2008 stood at around 4.5%, and unitary salary costs, which are rising at a rate of 2.9%, highlighting a loss of consumer purchasing power. In the international context, the financial crisis and the rising prices of raw materials since the summer of 2007 set the economic scene. In the USA, the mortgage crisis, fuelled by the sharp increase in high-risk mortgages of previous years has given rise to a liquidity crisis in the financial markets and to tougher credit conditions. The Federal Reserve was forced to lower interest rates to 2% to help mitigate the financial turbulences. In the case of the EMU, the European Central Bank has not lowered interest rates since last summer and, in light of the bleak inflationary prospects, it could even raise them, which could give rise to added risk for families and consumers. The most recently published economic data reflects a generalised economic slowdown, albeit smoother in the EU as a whole than in the USA. The sharp increase in prices and the forecasts of inflation rising even further, combined with more financial instability, the deterioration of the labour market and the intensification of an adjustment in the real estate sector increase the risks for the future of the Spanish economy, in terms of consumption and investment. In this context, a deteriorating economic and financial situation in Spanish households is foreseeable, particularly in those with higher mortgages, who will be faced with less purchasing power, rising unemployment, asset depreciation and more restricted and expensive financing. Bearing in mind the described economic context, this report analyses the impact of economic growth and employment on the most relevant collectives and sectors from the point of view of social exclusion, updating the diagnoses of the main tendencies and challenges relative to the social situation that were included in previous National Action Plans for Social Inclusion. As in the previous plans, and in line with the multidimensional nature of poverty and social exclusion, the diagnosis is structured in the following blocks: i) Employment and access to resources, which analyses the labour market from different perspectives associated with social exclusion, economic poverty and access to resources, such as education, healthcare and housing; ii) Prevention of exclusion risks, which covers the area of the family and access to new technologies; iii) Initiatives for the most vulnerable groups, which addresses the groups most exposed to situations of social exclusion individually. The statistical and documentary sources used in the diagnosis are diverse and the indicators employed are largely based on those of the EU (Social Protection Committee) and national ones, taking 2007 as last contextual reference year for the diagnostic present of situation. Most of the information was obtained from the Living Conditions Survey (LCS) and the Labour Force Survey (LFS) conducted by the National Statistics Institute. The analysis is rounded off with other statistics from, among others, the Ministry of Labour and Immigration, the Ministry of Education, Social Policy and Sports, and the Ministry of Industry, Tourism and Commerce

9 It is worth bearing in mind that data published by EUROSTAT has been used to make comparisons with other EU countries. However, it should be noted that the methodology of the Community Statistics on Income and Living Conditions (EU-SILC) has not been implemented on all the countries. Therefore, in the absence of homogenous statistics, some of the data is based on EUROSTAT estimates, particularly with regard to the last countries to join the European Union. 2 EMPLOYMENT As well as being the fundamental source of one s income and therefore one s main means of subsistence, employment is also an important mechanism for articulating social relations. Work is the means through which the individual acquires rights and responsibilities with regard to society and through which society acquires them towards the individual. A lack of or precarious employment can have far-reaching effects that stretch beyond purely economic issues. Access to the labour market is one of the main mechanisms for combating and preventing situations of social exclusion. Below is an analysis of the relationship between the labour situation and economic poverty, as well as the different characteristics of unemployment in Spain. However, given that having a job does not guarantee stability or social integration for workers, a specific reference is also made to the situation of the working poor. In the last few years, the Spanish labour market has evolved very favourably, although recent data points to a falling employment rate and rising unemployment. In recent years, the rate of job creation in Spain has been higher than the European average, although the unemployment rate continues to be among the highest in Europe. These tendencies could intensify in the future in light of the forecasted global economic slowdown. In Spain, the prospects of an intense adjustment in the construction sector, the sector with the highest economic and employment growth in the last few years, heighten the risks for the labour market. According to the LFS data for the first quarter of 2008, as in previous years, the active population continues to increase, standing at thousand persons and an activity rate of 59.3%. In the past year, the number of active persons has increased by 651 thousand, of which 363 thousand are women. The activity rate continues to reflect a large difference between men, 69.3%, and women, 49.7%. If we compare the Spanish with the foreign population, the differences in the activity rate widen, 57% compared with 76.6%, respectively. In the first quarter of 2008 the number of occupied persons rose to thousand, which is an increase of 333 thousand persons in the past year, but marks a falling pace of growth in the number of occupied persons. By gender, in the past year there were 263 thousand more women in employment, compared with 69 thousand more men. Likewise, the number of occupied persons among the Spanish population has fallen whilst the number of occupied - 8 -

10 persons among the foreign population has risen. In the first quarter of 2008, 14.42% of the total number of occupied persons were foreign nationals. In the first quarter of 2008, the unemployment rate stood at 9.6% and the number of unemployed persons at thousand, marking an increase of 318 thousand unemployed persons in the past year. By gender, unemployment has been rising faster among male workers than female workers, although the unemployment rate continues to be very unbalanced, 7.9% for men against 12% for women. By population, the unemployment rate has risen faster among Spanish nationals than among the foreign population, although the unemployment rate among Spanish nationals is 8.73% compared with 14.65% among foreigners. The total number of salary earners was thousand in the first quarter of 2008, marking an increase of 302 thousand persons in the past year but a lower rise than in By type of contract, the number of indefinite contracts rose to thousand in the first quarter of 2008, an increase of 509 thousand in the past year, which has reduced the temporality rate from 31.95% one year ago to 30.15%, although it continues to double the temporality rate of the EU-27, which stands at 14.5%. As regards working hours, the number of persons occupied in part-time jobs is thousand, with a clear difference between men, 493,800, and women, 1,956,000. The proportion of persons occupied in part-time jobs continues to increase and in the first quarter of 2008 stood at 12.01%. On another front, long-term unemployment has increased significantly, rising to 2.1% in the first quarter of 2008, after registering negative rates of more than 14% and 7% in 2006 and 2007, respectively. On the subject of income distribution, according to Spain s Quarterly Accounting Figures for the first quarter of 2008, the remuneration of salary earners increased by 5.9%, compared with 7% in 2007, which can be explained by a deceleration of nine-tenths of a point in salaried employment. 2.1 Poverty and labour situation As mentioned above, employment is the main source of household income; therefore the likelihood of finding oneself below the risk-of-poverty threshold is closely associated with one's labour situation. The percentages of adults below the risk of relative poverty threshold differ based on the circumstances of their economic activity

11 According to the Living Conditions Survey 1 (LCS) for 2006, 19.1% of the population of working age residing in Spain was below the risk of relative poverty threshold (Table 1). This percentage has remained practically unaltered over the last three years. By gender, the rate of poverty among men has remained in the region of 17.5% over the last three years. The percentage of the female population below the risk-of-poverty threshold has also remained practically the same, with a slight increase of three-tenths of a point, and stands at 20.7%. Table 1. POPULATION OVER 16 YEARS OF AGE BELOW THE RISK-OF-POVERTY THRESHOLD ACCORDING TO ECONOMIC ACTIVITY AND SEX, (%) Total Men Women Total Men Women Total Men Women Total Occupied Unemployed Retired Other inactivity Non-occupied Source: Living Conditions Survey, NSI. Considering the distribution of the population in relation to one s most frequent professional situation and sex, the LCS for 2006 (Table 1) highlights that the highest percentage of persons with incomes below the risk-of-poverty threshold continues to be among unemployed persons, with 37.6%. The situation of unemployed persons improved significantly in 2005, when the poverty rate among this collective fell by more than five percentage points compared with 2004 to stand at 34.8%, although it rose once again in 2006 by nearly 3 points. The risk-of-poverty rate among non-active persons (not retired) is the second highest, with 29.6%, followed by 29.1% among the non-occupied population and 23.9% among retired persons. As regards occupied persons, the proportion stands at 9.8%. In 2006, all the population groups differentiated by their labour situation witnessed falls in the percentage of persons below the risk-of-poverty threshold compared with 2004, although according to the data of 2006 relative to 2005, only retired and occupied persons improved compared with the previous year, particularly as a result of the improved situation of the female population included in these groups. 1 The Living Conditions Survey (LCS) is conducted annually in all the countries of the EU and it is targeted at households for the purpose of providing harmonised information on income and the level and structure of poverty or social exclusion. Additionally, every year a specific theme module on a relevant subject is included in the survey: the LCS 2006 addressed social participation

12 In the differentiation by gender, unemployed men are the most affected, 43.6%, marking an increase of 2 points compared with 2005, although a significant reduction of 6.5 points compared with The rate of poverty among unemployed women is also the highest of the female population. This is the rate that has registered the worst evolution in the last year, given that it increased from 30.7% in 2005 to 34.2% in 2006, an even higher level than that of As in previous years, women present a higher population rate below the risk-of-poverty threshold than men, 20.7% compared with 17.5%. According to economic activity, inactivity (excluding retirement), which includes domestic work and non-occupation, are the situations that explain it. The situation of occupied and retired women has improved significantly in the last two years. The male population presents higher population rates below the risk-ofpoverty threshold in the groups of unemployed, occupied and retired men. Compared with the average figures for the EU-25 relative to the period (Table 2), it is significant to note the small variation in nearly all the groups analysed, except in the group of unemployed persons, which after an improvement in 2005 went on to rise again in Compared with the EU-25, the worst performance was found in the group of retired persons, with a rate of 24% in Spain against the European rate of 16%, and in the group of nonoccupied persons, 29% compared with 23%. Among occupied persons, the situation in Spain is also less favourable than that of our neighbours. The only group with similar figures to the EU-15 is that of unemployed persons, which even registers lower figures than those of the EU-25. On another front, gender differences are wider among the Spanish population than the EU average, particularly in the case of retired persons

13 Table 2. POPULATION OVER 16 YEARS OF AGE BELOW THE RISK-OF-POVERTY THRESHOLD ACCORDING TO ECONOMIC ACTIVITY IN SPAIN AND THE EU, (ANNUAL AVERAGE - %) Spain Total Men Women Total Men Women Total Men Women Total Occupied Unemployed Retired Other inactivity Non-occupied EU Total Men Women Total Men Women Total Men Women Total Occupied Unemployed Retired Other inactivity Non-occupied EU Total Men Women Total Men Women Total Men Women Total Occupied Unemployed Retired Other inactivity Non-occupied Source: EUROSTAT. However, in 2007, the figures relative to the population living in households where none of the members are working were more positive in Spain than in the EU. The population below 18 years of age living in households where none of the members are working was just 5% in Spain, compared with 9.3% in the EU-15 and the EU-25 (Table 3). This percentage fell by three to four-tenths of a point in the period in Spain and in neighbouring countries. Among the population between 18 and 59 years of age, the percentage of the affected population fell to 6% and continues to be below the EU-15 average, 9.1%, and the EU-25 average, 9,3%. On another front, according to the LFS, the number of households where all the active members are unemployed has increased in the past year by 99,200, an increase of 24.1%, and stands at thousand households

14 Table 3. POPULATION LIVING IN HOUSEHOLDS WHERE NONE OF THE MEMBERS ARE IN EMPLOYMENT, BY AGE, (AS A % OF THE AGE GROUP) Children (0-17 years) Adults (18-59 years) SPAIN EU-15 EU Source: EUROSTAT, Labour Force Survey. 2.2 Unemployment and employment by age groups and gender Once again, in relative terms, unemployment in Spain continues to have a greater impact on the young population, particularly women. The unemployment rate among young people (population between 16 and 19 years of age) continues to be higher than among the population as a whole. In the first quarter of 2008, the unemployment rate in Spain was 9.6%, therefore youth unemployment, with a rate of 32.9%, was 3.7 times higher than the global unemployment rate. Youth unemployment, which in 2006 and 2007 evolved very positively, reducing the percentage of unemployed persons in this group of the population to a minimum of 27.5%, has shot up again in 2008 to 32.9%. Consequently, we can highlight that the increasingly difficult and long labour-integration process of the youth collective increases in advance the risks of young people finding themselves below the risk-of-poverty threshold. The scale of youth unemployment has given rise to the decision to include institutional efforts centred on education/training and employment in the social policies aimed at increasing young people s quality of life. For example, the Organic Law on Education, dated May 2006, includes measures to control early school leaving. Youth unemployment and underemployment have grave consequences since they can permanently affect young people s capacity to be employment, as well as their future income and access to quality employment. In the analysis by age groups, the highest rates of unemployment are found among the population between 16 and 19 years of age, and in second place, the population between 20 and 24 years of age, with an unemployment rate of 18%, twice the global unemployment rate in Spain. According to the data for the first quarter of 2008, it is worth highlighting that both groups have experienced significant increases, 5.44 and 2.76 percentage points, respectively, compared with the levels reached in the same period of As regards gender, the differences between men and women continue to be significant in all the groups of the population. In the first quarter of 2008, unemployment affected 7.9% of the

15 total male population, compared with a female unemployment rate of 12%. This difference was 10 percentage points in the 16 to 19 age group. Table 4. RATES OF UNEMPLOYMENT BY GENDER AND AGE GROUP (%) I/2006 I/2007 I/2008 Total Men Women Total Men Women Total Men Women Total to 19 years to 24 years to 54 years years and over Source: Labour Force Survey, NSI. However, it is worth highlighting that in the last few years the gap between the male and female unemployment rates has been narrowing in all the age groups, shifting from 5.9 points in I/2005, to 4.1 points in I/2008 for the population as a whole (Table 5). Table 5. DIFFERENTIAL BETWEEN RATES OF EMPLOYMENT BY GENDER AND AGE GROUP (IN PERCENTAGE POINTS) I/2005 I/2006 I/2007 I/2008 Diff. W-M Diff. W-M Diff. W-M Diff. W-M Total to 19 years to 24 years to 54 years years and over Source: Labour Force Survey, NSI. On another front, it is also interesting to analyse the employment data focusing on these age and sex differences. Despite the fact that since the year 2005 the figures have been showing an improvement in the occupation rate of women of all ages, the female employment rate continues to be below the male rate in all the age groups, but the gap widens substantially among the population between 30 and 59 years of age. Men reach their highest employment rate between 35 and 39 years of age and they keep it practically stable (with a slight fall) until the age of 55, with rates in the region of 89%. In the case of women, the highest employment rate is reached between 25 and 29 years of age (72%), but the rate begins to fall immediately after the age of 29, plunging as of the age of 50 (Graph 1)

16 Graph 1. RATES OF EMPLOYMENT BY AGE GROUPS AND SEX, I/2005 AND I/2008, (%) 100% 90% 80% 80.8% 88.8% 89.2% 88.8% 86.4% 83.4% 70% 60% 59.2% 71.8% 71.3% 67.6% 64.9% 63.5% 73.6% 50% 49.0% 53.9% 46.8% 40% 39.4% 30% 20% 23.3% 21.3% 10% 14.2% 0% 3.1% 1.2% 16 to 19 years 20 to 24 years 25 to 29 years 30 to 34 years 35 to 39 years 40 to 44 years 45 to 49 years 50 to 54 years 55 to 59 years 60 to 64 years 65 plus Men I/2008 Women I/2008 Women I/2005 Source: Labour Force Survey, NSI. 2.3 Unemployment and employment by education/training achievement and gender To a large extent, one s education/training achievement determines the category and quality of one s employment as well as the possibility of accessing the labour market. Subsequently, in general terms, we can see an inverse relationship between unemployment and academic achievement (Table 6). Up until the first stage of secondary education, the unemployment rates among persons of all levels of education achievement are higher than the unemployment rate of the population as a whole. In the last three years, the unemployment rates among persons of all levels of education achievement have increased, with the exception of the population with bachelor s degrees and doctorates. According to the LFS data for the first quarter of 2008, the unemployment rate among the illiterate active population stood at 24.5%, compared with 5.8% among persons with postsecondary education (except doctorates). The rate of unemployment among the illiterate female population is especially high, 36.9%, compared with 18.9% among the illiterate male population. The gap between both sexes is very wide in all cases, given that the

17 unemployment rate for women is 1.4 to 1.9 times higher than the male rate, except in the case of persons with secondary education who have completed vocational training and labourmarket integration courses. Table 6. RATES OF UNEMPLOYMENT BY ACADEMIC/TRAINING ACHIEVEMENT AND SEX (%) I/ 2006 I/ 2007 I/ 2008 Total Men Women Total Men Women Total Men Women Total Illiterate Primary education st stage of secondary education and respective vocational 11.3 training & labour-market integration 2nd stage of secondary education and respective vocational training & labour-market integration Vocational training & labour-market Integration with 2nd stage of secondary education title Further education, except doctorates Doctorates Source: Labour Force Survey, NSI. Below is an analysis of the differences in employment as a result of the different levels of education/training achievement whilst also considering the gender effect. Three groups are established for this analysis. Group 1 includes the illiterate population and the population with primary education. Group 2 includes the population that has completed vocational training and labour-market integration courses not requiring completion of the 1st stage of secondary education; the population that has completed the 1 st stage of secondary education; the population that has completed social guarantee and vocational initiation courses (these courses were introduced by the government as a safety net to provide basic vocational training to young people who did not manage to complete the 1 st stage of secondary education); the population that has completed vocational training and labour-market integration courses requiring completion of the 1 st stage of secondary education; the population that has completed the 2 nd stage of secondary education; and the population that has completed vocational training and

18 labour-market integration courses requiring completion of the 2 nd stage of secondary education. Group 3 includes the population with university degrees in technical and professional subjects; the population with special non-standardised university degrees offered by certain universities; the population that has completed advanced vocational training and labour-market integration courses; the population with university diplomas; the population with official professional specialisation courses; and the population with doctorates

19 Graph 2. RATE OF EMPLOYMENT BY EDUCATION/TRAINING MEN ACHIEVEMENT AND DIFFERENTIAL, I/2008 (%) 120% 100% 80% 92.3% 62.1% 82.9% 81.2% 70.6% 92.7% 94.0% 95.4% 88.7% 89.1% 89.1% 76.2% 76.8% 72.9% 93.7% 86.8% 76.4% 91.5% 84.2% 75.8% 84.6% 74.6% 60% 58.7% 58.7% 67.1% 55.1% 48.7% 40% 42.8% 28.5% 20% 21.2% 0% 3.9% 11.4% 1.6% 20% 16 to 19 years 20 to 24 years 25 to 29 years 30 to 34 years 35 to 39 years 40 to 44 years 45 to 49 years 50 to 54 years 55 to 59 years 60 to 64 years 65 plus Differential Illiterate and primary education (groups Z and B) Secondary (groups C G) Further education (H L) WOMEN 100% 90% 80% 78.9% 82.0% 81.1% 79.7% 83.0% 79.4% 70% 60% 55.7% 69.6% 65.6% 62.2% 60.4% 61.8% 55.2% 72.9% 50% 40% 43.8% 47.5% 40.9% 48.7% 46.3% 46.8% 49.1% 45.0% 38.3% 40.8% 45.2% 30% 28.8% 28.1% 20% 14.7% 15.0% 10% 13.9% 7.8% 0% 3.0% 0.7% 16 to 19 years 20 to 24 years 25 to 29 years 30 to 34 years 35 to 39 years 40 to 44 years 45 to 49 years 50 to 54 years 55 to 59 years 60 to 64 years 65 plus Differential Illiterate and primary education (groups Z and B) Secondary (groups C G) Further education (H L) Note. The differential is measured as the employment rate of the population with post-secondary education minus the employment rate of the population with primary education or illiterate, for each age group. Source: Labour Force Survey, NSI

20 The results of this analysis show that: i) the level of education/training achievement has a greater impact on female employment than on male employment, as we can clearly see that the gap between the population with higher education/training and the population with lower education/training is wider among women than men; ii) the influence of education/training is greater among the female population as it gets older, given that, in the case of men, the employment differential at all levels of education/training achievement remains practically stable as of the age of 25. The employment differential among the female population of group 1 and group 3 stands in the range of 30 to 40 percentage points as of 25 years of age, as opposed to 12 to 22 percentage points among the men from the same groups. The highest employment differential between different education/training groups and gender is found in the male population between 16 and 19 years of age. This situation highlights that high education/training achievement helps young people to gain access to the labour market in 92% of the cases, compared with just 21% in the case of young people who are illiterate or have only completed primary education. This situation explains the existing high unemployment rate among the population between 16 and 19 years of age (section 2.2). At these ages the rates fall significantly among women, as employment reaches 43.8% of the women belonging to group 3 and only 13.9% of those belonging to group 1. The employment rate among women between 25 and 44 years of age stands in the region of 49% for those with low education/training achievement, compared with a rate of approximately 79% for female workers with higher education. Women above 44 years of age belonging to group 1 register low rates of employment, with just 28.8% among those between 55 and 59 years of age, compared with 72.9% for those belonging to group 3. It is worth highlighting that the employment profile in group 3, the highest education/training achievement, is more similar between men and women, with a gender differential in the region of 10 to 15 percentage points, although it is always lower in the case of women. In the lowest level of education/training achievement, group 1, the gender differences widen by as much as 30 percentage points. If we compare the evolution of the employment differentials between the population with post-secondary education and the population with primary school education in 2008 with the differentials for 2005, we can see that: i) in the case of men, the differential has increased among the population under 29 years of age, mainly due to a fall in the employment rates among the population with lower education levels, a trend also observed among men aged 40 to 44 and 50 to 54 years. However, the differential between men aged 55 to 59 widens in 2008 due to higher employment among the population with post-secondary education; ii) in the case of women, the employment gap widens among the younger and older women and narrows among those between 30 and 59 years of age. The cases where the employment differential between the population with post-secondary education and the population with pre-secondary education widens is due to less employment among the population with lower education levels, whilst in the cases where the differential narrows is due to an increase among the population belonging to group

21 2.4 Long-term unemployment Remaining unemployed for a long period of time can give rise to a socio-economic-labour downward spiral that is difficult to get out of. If the unemployment situation extends in time, a fall or even a lack of income is produced, the chances of finding a job decrease and social alienation increases. Long-term unemployment is associated with the personal characteristics of the unemployed individuals and has a greater impact on older people, on workers without any skills and on persons who have lost their jobs due to layoffs. A society with high percentages of long-term unemployment highlights serious problems in the labour market. High rates of long-term unemployment indicate serious problems for certain groups and normally an unsatisfactory degree of success in job creation. On the contrary, high percentages of short-term unemployed persons tend to be associated with a higher job creation rate and greater labourmarket mobility. According to the LFS data, in the first quarter of 2008 the rate of long-term unemployment 2 stood at 2.1% of the active population. This rate continues to fall from previous years (threetenths of a point less than in 2006), although at a slower pace. The rates by gender remain practically the same as those of previous year, although in the case of women there is a greater improvement, down three-tenths of a point from Despite the improvement among the female population, the difference between the male and female rates continues to be 1.8 percentage points (1.4% for men against 3.2% for women (Table 7). The risk of social exclusion among the collective of long-term unemployed persons is highest among the very long-term unemployed (more than two years). The previous analysis is very similar if we just consider this collective. In general, the improvement is very slight and the rate for women also evolves more favourably, therefore the differential between the female rate and the male rate is reduced. However, the differences by gender continue to be large, given that the very long-term unemployment rate among women more than doubles that of their male counterparts. Among the population as a whole, in the first quarter of 2008 the very long-term unemployment rate fell by one-tenth of a point from that of the same period of the previous year, to 1%. 2 Percentage of unemployed persons who have been searching for a job for 1 year or more over the total active population

22 Table 7. RATES OF LONG & VERY LONG-TERM UNEMPLOYMENT, BY GENDER (%) I/2006 I/2007 I/2008 Total Men Women Total Men Women Total Men Women Long-term unemployment rate Very long-term unemployment rate Proportion of longterm unemployment ) Percentage of unemployed persons who have been searching for a job for 1 year or more over the total active population. 2) Percentage of unemployed persons who have been searching for a job for 2 years or more over the total active population. 3) Percentage of unemployed persons who have been searching for a job for 1 year or more over the total number of unemployed persons. Source: Labour Force Survey, NSI. Looking at the population by age, the biggest fall in the long-term unemployment rate took place among older people, although, as we already mentioned, this group of the population shows a higher rate of long-term unemployment than the collective of younger people. In terms of the unemployed as a whole, the ratios show a strong improvement. In the first quarter of 2008, the proportion of long-term unemployed persons fell to 22.3% of the total number of unemployed persons, which is 3.3 percentage points less than in the same period of Although this improvement took place among both sexes, it was much higher in the case of men, where the rate fell from 21.9% to 17.7% of the total number unemployed men, whilst among women, the rate fell by 2 points to 26.4%, therefore the difference between both sexes widens from 6.5 percentage points to 8.7 percentage points

23 Table 8. RATES OF LONG & VERY LONG-TERM UNEMPLOYMENT, BY GENDER, OF THE EU-15 AND THE EU-25 (ANNUAL AVERAGE - %) EU-15 EU Total Men Women Total Men Women Long-term unemployment rate (1) Very long-term unemployment rate (2) Proportion of long-term unemployment (3) EU-15 EU Total Men Women Total Men Women Long-term unemployment rate (1) Very long-term unemployment rate (2) Proportion of long-term unemployment (3) (1) Percentage of unemployed persons who have been searching for a job for 1 year or more over the total active population. (2) Percentage of unemployed persons who have been searching for a job for 2 years or more over the total active population. (3) Percentage of unemployed persons who have been searching for a job for 1 year or more over the total number of unemployed persons. The long and very long-term unemployment rate in Spain among the total population, as well as among men and women, is far below the averages registered in the EU-15 and EU-25 countries (Table 8). It is worth highlighting that, in the case of Europe, long-term unemployment affects men and women practically the same, whilst in Spain, the differential is very wide, at the expense of women. The figures of all the indicators relative to men are much higher in Europe than in Spain, whilst the long and very-long term unemployment rates among European women are practically the same as those of Spanish women. In terms of long-term unemployment in Europe as a proportion of total unemployment, the ratio is much higher than in Spain, which points to a more favourable situation in terms of this structural component of unemployment and a generally better situation in the Spanish labour market. 2.5 The working poor As already mentioned, 9.8% of occupied persons were below the risk-of-poverty threshold in 2006, which highlights certain employment precariousness. The existence of lowproductivity jobs in the labour market has given rise to a new class of workers already mentioned in the European Council gathered in Nice in the so-called working poor

24 Below is an analysis of some of the features of the labour market that can give rise to situations of social exclusion among female and male workers, such as underemployment, temporality and part-time employment Underemployment According to the NSI, underemployment takes place when a person s occupation is inadequate with respect to certain rules or another possible occupation, in light of the person s qualifications (education/training and professional experience). Thus, there are two main forms of underemployment: insufficient hours and situations of inadequate employment. The LFS data for the first quarter of 2008 reveals that underemployment in Spain affects 1,602,800 persons, which means that 7.9% of the occupied persons are in a situation of underemployment. Compared with the first quarter of 2007, the number of underemployed persons has increased by 7.7% (Table 9). Table 9. UNDEREMPLOYED PERSONS, BY GENDER (THOUSANDS OF PERSONS) I/2006 I/2007 I/2008 Var 07/06 Var 08/07 Persons % % Total 1, , Men Women Source: Labour Force Survey, NSI. By sex, women are the most affected by underemployment, given that they make up 54.6% of the underemployed occupied population, although the percentage has fallen by 1.4 percentage points in the last year. In terms of the occupied population by gender, women present a higher rate of underemployment, 10.3%, compared with 6.1% for men, and the gap widens in the services sector, 10.9% compared with 5.2% for men. Underemployed women in the services sector make up 70.3% of the total underemployment in this sector. By economic sector, construction was the sector with the worst performance in the past year. Underemployment in this sector makes up 13.1% of the total rate of underemployment, compared with rates in the region of 10% in the previous two years. In terms of the occupied population in each sector, underemployment in the services sector continues to register the highest rates, although it is the only sector to register a falling tendency, given that underemployment has increased in the rest of the sectors (Table 10)

25 Table 10. PROPORTION OF UNDEREMPLOYED PERSONS, BY ECONOMIC SECTOR, (AS A % OF THE TOTAL NUMBER OF OCCUPIED PERSONS) I/ 2006 I/ 2007 I/ 2008 Total Men Women Total Men Women Total Men Women Total Agriculture Industry Construction Services Source: Labour Force Survey, NSI Employment temporality Labour conditions are one of the determining factors of employment precariousness. Employment instability, both from the point of view of the distinction between an indefinite and a temporary contract, and part-time employment, are risk factors in social exclusion. Below is an analysis of temporality among salary workers as a whole as it is well known that it is one of the main problems of the labour market. In Spain, temporality is very high and, according to the LFS, it stood at 30.1% in the first quarter of Although the labourmarket reform of 2006 introduced policies to encourage indefinite contracts, the temporality figures are still high and it continues to affect more women and young people. Making a distinction between indefinite and temporary contracts, we can see that the number of salary workers with indefinite contracts has increased in the last two years by 2.2 percentage points, entailing a fall of 3.2 percentage points in the number of temporary contracts, bearing in mind the increase in the total number of contracts. This evolution has had a positive effect on more women than men, whose temporality rate fell to 32% in the first quarter of 2008 from 36.1% in The gender gap has increased in the past year, although it had narrowed by more than 1.5 percentage points in the previous two years

26 Table 11. SALARY EARNERS BY GENDER AND TYPE OF CONTRACT OR Thousands of persons % LABOUR RELATION. I/2006 I/2007 I/2008 Thousands of persons % Thousands of persons Var. rate I/2007/I/2006 Var. rate I/2008/I/2007 % % % Total 15, , , Indefinite 10, , , Temporary 5, , , Men 9, , , Indefinite 6, , , Temporary 2, , , Women 6, , , Indefinite 4, , , Temporary 2, , , Source: Labour Force Survey, NSI. As regards the relationship between temporality and workers age, young people were the most affected by temporality in the first quarter of 2008, given that those between 16 and 19 years of age registered a rate of 76.8% and, although with a significant fall, those between 20 and 24 years of age registered a rate of 55.2%. Compared with the first quarter of 2007, the rate of temporality fell among the 20 to 24 and 25 to 29 age groups (Table 12). Table 12. PERCENTAGE DISTRIBUTION OF SALARY EARNERS BY LENGTH OF CONTRACT AND AGE GROUP (%) I/2006 I/2007 I/2008 years Total Indefinite Temporary Total Indefinite Temporary Total Indefinite Temporary Total to 19 years to 24 years to 29 years to 39 years to 49 years to 59 years to 69 years Source: Labour Force Survey, NSI Part-time employment The policies of the last few years aimed at encouraging a right balance between work and family life have promoted more flexibility in working hours and in the length of contracts. It