YOUTH UNEMPLOYMENT IN SPAIN CAUSES, CURRENT STATUS AND FUTURE PROSPECTS Life Long Learning: A Key to employability for the disadvantaged 1 CEPER AMÉRICA

1. The economic situation in Spain and the youth unemployment 2. National System of Employment 3. Educational System Life Long Learning: A Key to employability for the disadvantaged 2 CEPER AMÉRICA INDEX

1. The Economic Situation in Spain and the youth unemployment BEFORE THE CRISIS: From 2003 to 2007 the GNP (Gross National Product) grew up more than 3% per year. Two sectors were the most important: the financial and the building sectors Between 2004 and 2008 were built more than 3 million houses-flats. (Population: 40 mill.) A lot of students, from secondary school to university, dropped out from their studies to earn money working for building business. 3 CEPER AMÉRICA

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SITUATION IN SEPTEMBER 2013 Nowadays Spain is living the biggest crisis in the last 50 years:  Because of the banking crisis, the government injected 54,000 million euros to avoid bankruptcy of the Spanish banking system.  At the beginning of the term, the government of Spain took drastic cuts in health, education and social services.  More than people were unemployed. (27,16% in Sept. 2013)  The Gross National Product is going down  Spanish state had to pay a high interest for its debt. 5 Life Long Learning: A Key to employability for the disadvantaged CEPER AMÉRICA

YOUTH UNEMPLOYMENT RATE 6 Life Long Learning: A Key to employability for the disadvantaged CEPER AMÉRICA  Youth unemployment in Spain has reached a new high of 56.1%, that is a quarter of the 3.5 million under-25s jobless across the Eurozone. 883,000 people. (30th of August 2013)  More than five in ten of those young people belong to that new “lost Generation”.  A lot of them are moving to other European or Latin American countries looking for a job.  Most of them have not graduated because they dropped out from the secondary school or university when they were teenagers.

7 CEPER AMÉRICA Youth Unemployment rate

CURRENT SITUATION SEPTEMBER Life Long Learning: A Key to employability for the disadvantaged CEPER AMÉRICA TotalMenWomen Unemployment24,4%23,4%25,4% Under 25 years.53,7%55,4%51,7% 25 years or more22,2%21,1%23,6%

 Currently, due to labor flexibility imposed by the government, permanent employment are declining sharply while temporary and part-time jobs increase.  How is it possible that there are no social conflicts with these unemployment figures? Underground economy is the answer. And family support: the retirement pay of parents and grandparents is also part of the answer, since lots of young unemployed had to come back home.  Currently it is recognized that the cost of the bank bailout amounts to 100,000 million euros. 2,175 euros for each Spaniard. 9 CEPER AMÉRICA

10 CEPER AMÉRICA 2. SPANISH’S NATIONAL SYSTEM OF EMPLOYMENT

11 CEPER AMÉRICA DIVISION OF RESPONSIBILITIES: SPAIN AND ITS AUTONOMOUS REGIONS

12 CEPER AMÉRICA The central government sets the general strategies to follow in the "Spanish Employment Strategy “ and more concretely in its “Annual Plan of Employment policies ". Each autonomous region is responsible for managing active labour market policies (programs and services aimed at the direct care of the job seekers). In this collaborative framework between the central government and communities, Autonomous regions may choose to perform employment measures according to state regulations, the region itself or a combination of both. The Ministry of Education is responsible for the general framework of education policies and each autonomous region has the power to set them. DIVISION OF RESPONSABILITIES

13 CEPER AMÉRICA DIVISION OF RESPONSABILITIES Historical Evolution of the process of transferring responsibility for training and employment: 1992 The transfer process starts from the INEM to the autonomous communities in the management of the FIP Plan (currently, Vocational Training for Employment) The process of transferring the management of active employment policies to the Autonomous Communities starts The Public Service of Employment with the Public Employment Services of the Autonomous Communities within the National Employment System (SNE) is constituted. The INEM disappears.

14 CEPER AMÉRICA Law 56/2003, of 16 December, of Employment, establishes coordination instruments within the National Employment System:  The Spanish Employment Strategy.  The Annual Plan for Employment Policy.  The Information System of Public Employment Services. (SISPE-Modernization of Management. Improved measuring of registered unemployment) COORDINATION TOOLS BETWEEN THE CENTRAL GOVERNMENT AND THE AUTONOMOUS REGIONS

15 CEPER AMÉRICA 3. Educational System in Spain

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17 CEPER AMÉRICA PRE-SCHOOL EDUCATION: 1st cycle: 0-3 years 2nd cycle: 3-6 years (free) COMPULSORY EDUCATION: (free) Primary Education: 6-12 years(free) Secondary Education: years (free) POST COMPULSORY EDUCATION: (free) Baccalaureate: years (free) Vocational training: 16-18/18-20 years (free) University (fees depending on the degree) EDUCATIONAL SYSTEM IN SPAIN

18 CEPER AMÉRICA SPAIN IS TRYING TO ESTABLISH THE GERMAN MODEL OF „DUAL SYSTEM EDUCATION“. In Germany most students complete their high school degrees between the ages of 15 and 18, depending on what type of school they attended. Then they have the option to specialize. Some go to universities, while others enter a dual training scheme. They are paid during their studies, and when they finish their dual training scheme, more than 50% get a job in the same companies that take part in the project. In Spain students that decide to go to Profesional Schools realize that they spend part of the time in a company, they have to eat out, work a lot... and don‘t get paid at all; they have to face transportation and meal costs, and when they finish their studies there‘s no job for them. EDUCATIONAL DUAL SYSTEM IMPLANTATION

19 CEPER AMÉRICA Summary

20 CEPER AMÉRICA  Brain drain (Fuga de cerebros)  Generation „ni-ni“. They are neither in school nor working (Ni estudian ni trabajan)  No free resources available to improve employability: employment programs, employment training.  Long-term unemployment.  Return to country of origin (Immigrant people or immigant’s children) RISKS FOR YOUTH

21 CEPER AMÉRICA  We must train the new generation for the “new world”.  Fluency in English and management of new technologies will be important factors to find a good job  Review and prepare effective cooperation between Universities and Businesses SOME IMPORTANT POINTS FOR THE FUTURE

22 CEPER AMÉRICA Ministerio de Educación, Cultura y Deporte [06/09/2013] cturasistemaeductivoesp.shtml Enforced Vocational Orientation Project [06/09/2013] Sepe Revista de Formación y Empleo „Formación XXI“ macion_profesional_dual.xml.html  Datosmacro.com