Three ways to improve Spain’s job market in 2016

Employment rates are fickle beasts at the best of times, but during the double-dip recession that hit Spain a few years ago the government did its best to mask the true extent of the problem.

Youth unemployment hit 50% at the country’s lowest ebb – higher than Greece – so official figures tended to focus on the slightly more palatable overall employment figures, which, while one of the highest in the Eurozone, hovered around the more spinnable figure of 25-27%.

Since a raft of economic reforms were introduced by the government in 2012 and 2013, the situation has improved quite dramatically, with thousands of young Spaniards flocking back to the country having spent one or two years working in the bars, restaurants, hotels and offices of the UK and Germany.

And this week, official figures have been released that show Spain has added one than one million jobs since the country exited recession in 2013, making the recovery one of the strongest in Europe…

But problems remain in the job market of Spain, and while there are no easy fixes, if whoever is in charge of the country next year addresses these three problems, then 2016 could be an even rosier year for most Spaniards’ job prospects.

1. Introduce more flexible hours

A study published this week by Spain’s Institute for Family Policies (IFP) has found that Spain has the most inflexible working hours in Europe, making it hard for Spaniards to achieve a more satisfactory work-life balance.

Some 60% of those polled in the study said this inflexible culture has a negative impact on their family lives, while 80% believe Spain’s long working hours affect their lifestyles. The majority also agreed that their working hours are very strict and should be made more flexible.

Countries such as Germany, Denmark and France tend to have more open-ended start and finish times, and these nations also tend to work fewer hours but deliver higher levels of productivity. If Spanish employers could just put a little more trust in their staff to set their own hours – within reason – studies suggest that productivity, happiness and, yes, profitability will increase.

2. Encourage more remote working

The same study also found that Spaniards are rarely given the opportunity to work from home from time to time, with 92% of respondents saying that home working is simply not an option.

Again, northern European countries such as Sweden and the Netherlands regularly allow home working, and their economies have reaped the benefit.

In offering occasional home working, the study found, Spanish companies are more likely to attract more of the world’s top talent and end the culture of ‘presenteeism’ – which is when staff stay in the office for longer just to be seen to be there, whether they are working or not.

3. Longer, more secure contracts

This is a trickier one to overcome, but with a bit of foresight it can be done. Of the million extra jobs added in Spain over the past two years, a great deal of them have been seasonal (unavoidable, given the ebb and flow of Spain’s economy in line with the seasons), but some have been unnecessarily short-term and temporary.

Of course, Spain was infamous a few years ago for engendering a working culture where it was often near-impossible to get fired. But the Prime Minister’s labour reforms made it easier to hire and fire staff, which greased the wheels of employment. However, things have tilted too far the other way, and now many employees often find themselves signing short term contracts with low pay and scant benefits – a happy medium would be the ideal solution for all concerned.