lunes, 29 de octubre de 2012


This week different reports have seen the light of the day showing that Spain has broken historical records (all negatives).  Last entry we addressed the issue of the Living Conditions Survey 2012. Today we’ll focus our attention on the Labour Force Survey (EPA, in Spanish) corresponding to third quarterly of the current year. We’ll stress the main findings and then we’ll try to reflect on them.

First of all, the EPA is one of the most rigorous surveys in Spain and the only accredited by the EU in relation to unemployment.

For the first time in history unemployment rose above 25% (25’02%). That means 5.778.100 unemployed people, 3’2 million more than five years ago. 96.000 employments were lost in the last quarterly, half of them in the public sector (direct outcome of budgetary cuts). Men and people between 25 – 35 years old are the most affected by job destruction.  The number of fixed-term and part-time contracts grows up meanwhile permanent contracts decrease. There are 1.737.900 homes wich all of households members are unemployed. Unemployment is expected to rise next year.

And now, some comments on unemployment figures. Since 2010 both socialist and people’s parties agrees that labour market was the most important Spanish problem. High unemployment rates or temporary contracts were supposed to be the obvious symptoms of an inefficient labour market.  So in both cases they decided to reform labour market laws making easier and cheaper redundancies, reducing salaries, undermining collective bargaining, increasing the power of employers and weakening union’s competences, setting new precarious contracts…  The outcome of all theses measures is in the last EPA: more unemployment and more precarious jobs and an uncover result: the ongoing transfer from labour incomes to capital incomes.

By the way! A new record to take into account: more than 1.200 demonstrations have taken place in Madrid in the first nine months of 2012.

Unemployed people - unemployment rate - homes wich all of households members are unemployed

miércoles, 24 de octubre de 2012


This week has been published the Living Conditions Survey 2012 by the National Statistics Institute (INE). This report is particularly significant because its statistical data are accredited and compatible for all EU member States. Let us see the main findings of the document:

·         The yearly average income of households reached 24.609 €, that is – 1’9% with respect to 2010 and around the amount of 2006.
·         21’1 % of people is at risk of poverty and for unemployed people the risk ups to 35’8%.
·         There is a broad regional gap. The risk of poverty is significantly lower in Navarra (8’8%), Asturias (9’9%) or the Basque Country (10’8%) than in Andalusia (31’7%), Extremadura (31’9%) or Canary Islands (33’8%).
·         12’7% of households says that it’s very difficult to make ends meet (+ 2’9% than 2011).
·         44’5% (+ 5’6%) of households can’t afford to pay for at least one week annual holiday away from home.
·         40% (+ 4’1%) of households cannot afford unforeseen expenses.
·         7’4% (+ 1’2%) of households delays payments related to the main residence (rent, mortgage, gas or electricity receipts…)

Also this week the Government has announced that unemployment will continue growing in 2013, the economy will decrease around 1’5% and we’ll face new budgetary cuts.


jueves, 11 de octubre de 2012


Four different news items related with our last entry were published this week.  First of all, we will refer to the so called Red Cross “Día de la Banderita” (Little Flag Day). Every year, thousand of Red Cross volunteers take the streets carrying piggy banks asking for money.  People give some coins (or bank notes) and they receive in return Red Cross stickers (“”banderitas”). The amount collected goes to specific vulnerable groups abroad: starving population in African countries, poor people affected by the earthquake in Haiti or the tsunami in the Indian Ocean and so on. But this year the Red Cross Day was different. For the first time in history the money shall be used to fight poverty in Spain. This shows the current importance of poverty affecting Spanish people.  I suggest you to click the following link:

It’s a commercial (in Spanish) encouraging people to donate money to the Red Cross. The most striking image is the moment when volunteers aid to a father sharing a one-egg omelette between his two children.

Also regarding poverty, UNICEF has warned about the impact of the crisis on child poverty. 2.267.000 Spanish children (25%) are living bellow the poverty threshold (+ 4% than 2011). More than a half of them (14’4 %) suffer from severe poverty.

It’s hardly surprising this situation taking into account that Spanish households loss 18’4% of their wealth in 2011. According to the Global Wealth Report by Credit Suisse is the largest drop of the Eurozone.

And finally we deal with the question of inequality. Eurostat shows an increasing gap between poor and rich people after the onset of the crisis. In fact never inequality had never before been higher. 34 was the Spanish Gini Coefficient in 2011, in other words, the worst EU score out of Latvia. But results can be worse. According to the so called “Ratio 80/20” (relation between the richest 20% and the poorest 20%), Spain is the winner in inequality (7’5) ahead of Latvia (7’3) and far away from Germany (4’6) or Norway (3’3).

Nevertheless, I’m deeply convinced that the most important finding is that all those reports agree that the source of poverty and inequality is unemployment, lower salaries and wages and social cuts. Austerity policies, in other words. Meanwhile, Van Rompuy today announced that Spain is in the right track. Astonishing!

sábado, 6 de octubre de 2012


Caritas has just published the “7th Report of the Observatory on Social Reality” assessing the impact in Spain of the current crisis. The most relevant findings of the report are as follows:

·         We witnessed a substantial increase of poverty, mostly due to unemployment and cuts in social protection. Nevertheless a job is not a guarantee of social inclusion:  2’5 million people (15% of working population) are poor workers.
·         Nowadays 25% of population is at risk of poverty, that means that Spain shows emerging countries ratios.
·         During the years of economic growth, net social spending increased but not the social spending/GDP ratio.
·         In 2011, Caritas attended three times more people (over 1’1 million) than in the onset of the crisis. 40% of people attended were in chronic poverty.
·         The most vulnerable groups are young couples with children and immigrants. But the most remarkable fact is the increasing number of former middle class people demanding aid.
·         320 € is the average income of people attended by Caritas, that is 50% bellow of poverty threshold.

Poverty is sharply increasing as well as inequity. There is a growing mixed feeling of indignation and hopeless