Policy Leaders Emphasize Inflation Mitigation Through Stronger Labor Protections

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The head of the Valencia regional government stressed that shielding the labor market from the pressures of rising prices should be a top priority. He urged reaching an income agreement that expands rights and improves security for workers. This perspective was shared during the closing of a congress focused on general principles of Labor Inspection and new guidelines from the International Labour Organization about the future of work, an event co-led by the second vice-president and Minister of Labor and Social Economy, Yolanda Diaz. Source: Valencia regional authorities.

During his remarks, the regional leader highlighted a record high in autonomous employment, noting that the labor market currently supports more than 2,055,000 jobs. He also pointed to improvements in job quality alongside quantity. He cited that 70,000 new roles were created through a raise in the minimum wage to 1,000 euros, and 650,000 residents secured permanent contracts in 2022 due to labor reform. Source: Iberian labor statistics office.

He underscored that the immediate goal remains reducing inflation effects by protecting the labor market, and doing so through ongoing social dialogue. He argued that durable changes come from agreements rather than unilateral actions. Investing in social dialogue, he said, translates into greater rights, opportunities, and stability for workers. He also proposed strengthening the Labor Inspectorate as a pathway to curb informal economic activity, a persistent source of insecurity for workers and businesses alike. Source: Regional policy brief.

Similarly, Yolanda Diaz, Deputy Prime Minister and Minister of Labor and Social Economy, described the Labor Inspectorate as a pivotal institution in building fairer and more prosperous communities with decent jobs and meaningful lives. She called for enhanced human, material, and technological resources to support this century-old institution, which must adapt to new workforce models driven by digital platforms and remote work. Source: Ministry of Labor and Social Economy transcript.

Diaz also announced an expansion plan for the Inspectorate, aiming to assemble more than six hundred personnel within three years and to raise technical and administrative staff by roughly twenty percent compared with current levels. This buildup accompanies a notable rise in the Inspectorate’s budget, which has grown by forty-one and a half percent over the past three years. Source: Official budget overview.

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