a man inside unemployment have 35% more likely to reconnect labor market and get more jobs than a woman. Just as gender is a relevant variable for employability, age o An unemployed person under the age of 25 has a 70% greater chance of re-employment than someone aged 55 and over. These are two of the pieces of evidence contained in a study published by the Bank of Spain this Wednesday calling for the Government to reform unemployment benefits and increase their amount at the expense of shortening their duration.
As the government finalized the reform of the unemployment benefit system, the Bank of Spain wanted to add its own view to the discussion with a series of data and simulations on how long it takes the unemployed in Spain to exhaust their benefits and how many do. before finding another job among others. The study, framed in the banking supervisor’s annual report, measures the impact of already known biases in the labor market and the basis on which administrations drive their policies.
For example, women, young people, those over the age of 45 or victims of sexist violence are priority groups that need attention in public employment offices. And the Bank of Spain, through its simulation, determines that an unemployed man has an 8.1% chance of finding a job, compared to 6% for a woman in the same situation. The gap between the two primary interest groups, the youth and the unemployed, is greater. And those under 25 are 8.4% more likely to get stuck, compared to 5% of those over 55.
Half of the unemployment benefit in the last 6 months
There are currently total 2.7 million unemployed Registered as a job seeker at Sepe in Spain. However, not all of them receive a benefit or subsidy that compensates for their lack of income from work and provides a minimal guarantee for their livelihood. About three out of 10 They do not collect any income from Sepe. And they either didn’t contribute enough when they had a job, or they had already exhausted what was cited.
In Spain, it is necessary to have contributed the equivalent of a whole year in order to receive the minimum stipulated amount of unemployment benefits of four months. And to collect the maximum period of unemployment, i.e. two years in a row, it is necessary to have made an equivalent contribution of six years or more before.
And, according to data from the Bank of Spain, almost half of the unemployed who receive aid consume it before. six month, due to short previous work histories or instability of contributions. The same researchers warn of high polarization among the Spanish unemployed. Half spend less than six months collecting benefits before being rehired for another position. 18% exhausts him after two years of study.
The idea, put forward by the Bank of Spain, is to spend the same money on unemployment protection policies, but in a different way, to help people find jobs sooner. And the mechanism they propose is to increase the amount of benefits at the expense of reducing the maximum collection amounts. Currently, the contribution amount is 560 and 1.575 Euros monthly gross
The Bank of Spain has found that increasing the amount of assistance over time, at the expense of shortening their duration, will increase the probability of finding a job by an average of 0.11 percentage points. With a particular incidence among the less educated unemployed and the elderly.