Spain's labour Market Isn't Going To Get Better In 2011

spain world cupSpanish fans celebrate in a fountain in downtown Madrid

Photo: AP

This article originally appeared at elEconomista.es, an online Spanish business news website. Click here for the original version of this article, in Spanish.Jesus Caldera admits he is proud “of not betraying his ideals” during his work as Minister of Labour in Spain.

He even called that time the “golden age” of Spanish employment, during which the unemployment rate in 2007 fell to 7.9 per cent, the lowest in the country´s history.

Now he has written a book called “Time for Equality,” in which he reflects on the challenges of a country with 4.69 million unemployed.

During a recent interview, Caldera recognised that results from Spain’s labour reform would only be noticeable over a year from now.

“The estimates depend on the evolution of the active population in Spain,” he said. “It will moderate its growth and help generate employment more quickly than the IMF, according to the OECD.”

For Caldera, if this prediction is correct and Spain get closer to a potential growth and a smaller working population by 2014,  the situation “would produce a better result,” but it will be “a hard and difficult road.”

Regarding the reforms going on right now on the Spanish labour market, Caldera said that results would take time to be evident, even more than a year.

“Some believe that, miraculously, you can solve the problem in a year, but no,” he explained. “It will take more.”

Edited in English by Jose Luis de Haro and Julie Zeveloff

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