Just as reform efforts were finalized in Brussels at the close of last year, another pivotal milestone agreed with the European Commission concerns unemployment reform. The schedule before the end of 2022 calls for negotiations with social representatives to reorganize the welfare division of the social protection system. The CCOO additionally seeks to adjust some provisions inherited from the labor reform and supplementary laws passed during Mariano Rajoy’s tenure. Notably, it calls for revisiting the reduction of unemployment benefits introduced in 2012, which lowered the benefit from 60% to 50% of the regulatory base beginning in the sixth month of receipt.
The cost of this measure, according to the union, would be 1500 million euros per year. This figure includes reclaiming the ten-point increase and the state’s obligation to contribute to the unemployed that was handed over a decade ago. In addition, the CCOO advocates paying benefits in full, removing the partialization of some benefits (introduced in 2012), and reviewing care protection so there are no gaps in coverage for the unemployed. The union argues that negotiations should begin promptly to reform the system and ensure comprehensive coverage.
long term unemployment
The CCOO emphasizes the need for changes to the social protection system, supporting observations from its semi-annual unemployment protection report presented on Wednesday. The document analyzes the figures for the last six months of 2021 and notes a coverage rate of 62.6 percent for those with access to assistance, a level that has persisted for over a decade. The range has fluctuated between 55 percent and 65 percent, with a historical peak of 80 percent before the financial crisis. The report also highlights that long-term unemployed individuals represent about 48 percent, and the union recalls that extended periods of unemployment make reintegration into the labor market challenging and, in many cases, lead to the exhaustion of protection measures.
Accordingly, the report points out that only 17 percent of unemployed workers with work experience could not access any rights in 2009, a ratio that rose to 35 percent by 2021. It argues that not only social benefits but also the unemployment benefit system itself requires review, noting that a significant number of 1,007,980 people who lost their jobs and were excluded from unemployment protection should be able to access social benefits and other forms of aid or benefits.
resource allocation
The union also advocates broadening the resource allocation system for unemployment funding, aligning it with the financing patterns seen in recent years within the pension system. Here, premium payments are typically covered by contributions from both companies and workers, while social benefits rely on the General Government Budget. Official CCOO analysis shows that in the last two decades there have been only six years in which expenditure on unemployment contributions exceeded income. In the remaining fourteen years, social contributions funded other aids.
In recent times, there has been a perceived decline in the quality of unemployment protection: benefits have outpaced contributions, a situation not observed before the 2008 crisis, and women have been disproportionately affected by part-time work and reduced benefits. This insight, shared by Charles Brave, the CCOO Public Policy Secretary, calls for reversing the 2012 cuts, extending unemployment coverage to domestic workers and temporary farm workers, and strengthening protection across the system as a whole. The aim is to restore balance and ensure robust protection for all workers.