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The causes of unemployment which have not been contemplated, by Dr Vicenç Navarro

[24/06/11]

Vicenç Navarro, director of the Master's in Social and Public Policy, recently published an article in the newspaper Público on the causes of unemployment which have been ignored, and the growth of such unemployment in Spain.

Dr Navarro stated that business and financial circles have mistakenly attributed the high level of unemployment in the country to alleged rigidity on the job market, a consequence of excessive union power.

Dr Navarro does not agree with such idea and declared that one of the greatest causes of the lack of employment in the country is due to the scant development of the public sector, in particular national public services such as health, education, social services and subsidised housing among others, since the number of workers in these services is very low compared to other EU countries.

The limited creation of public employment and low income of the State is actually due to the enormous political and media-based power of the wealthy and de facto groups (banking and employers as a class), who encourage regressive fiscal policies to suit themselves, as they are the ones who pay least tax in Spain, whereas the vast majority of taxes come from employment income.

Employers in the country currently adapt themselves to the reduction in demand, reducing the work force, whereas in countries such as Germany, in joint agreement with workers' representatives and companies, have decided to reduce the amount of time worked instead of causing dismissals.

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