Báñez stated that "Garantía Juvenil" will favour youth hiring

01/07/2014

    _ The single online register for all administrations, which will offer opportunities to young people under 25, will be available from next Monday

    _ She stressed that 400 young people per day find a job thanks to the Estrategia de Emprendimiento y Empleo Joven

    _ Almost 90,000 people have found a stable job in the last four months thanks to the 100 euro flat-rate for open-ended contracts

    _ From that month onwards, every entrepreneur will be able to register the contract as well as to register the worker at the Social Security at the same time via the Ministry website

    _ Before the end of July the Portal Único de Empleo will be launched, a tool that will bring together all the offers of public and private employment portals in our country

Fátima Báñez, Minister of Employment and Social Security, took part in the second day of the 2014 FAES Campus and delivered the conference “Employment in Spain: Between the Labour Reform and Recovery”José María Aznar, President of FAES Foundation; Javier Zarzalejos, Director of the Campus and Miguel Marín, Director of the FAES Foundation Economy and Public Policies Department, also participated in the session.


Báñez assured that implementing the Garantía Juvenil measure in Spain will foster youth hiring by companies. This morning, she explained at FAES Campus that, among other measures, Garantía Juvenil will imply all administrations, Spain and Autonomous Communities, working on a single online register for the first time aiming to offer opportunities to people under 25 that will be operating from next Monday.

“The aim is for young people under 25 who are neither occupied nor studying or training to have a work experience and enter the labour market” explained Báñez, who recalled that Spain will receive 1,887 million euros in the framework of the European Garantía Juvenil from the Youth Employment Initiative and the European Social Fund.

In this respect, the Minister recalled that the Government, following a process of dialogue with social partners, passed the Estrategia de Emprendimiento y Empleo Joven 2013-2016 last February, an initiative from the Ministry of Employment and Social Security that envisages 100 measures aimed at improving employability and facilitating youth employment and self-employment.

Some of them are reducing the Social Security contribution of companies with less than 10 employers for hiring young people under 30 and the 50 euro flat-rate for self-employed workers Social Security contributions. Jointly, the Estrategia measures have enabled 400 young people per day to find an employment opportunity, as employed or self-employed workers.

NET EMPLOYMENT CREATION
Fátima Bañez, Minister of Employment and Social Security, mentioned the unemployment and Social Security enrolment figures for June and advanced that “we have been creating net employment for the last ten months in terms of seasonally adjusted enrolment”.

Therefore, the data shows that the reforms adopted by the Government, the ambition and responsibility of workers representatives and entrepreneurs at negotiating tables are now bearing fruit. In fact, as she said, “thousands of jobs have been saved and we have managed to create net employment”. From May 2013 to May 2014 the number of enrolments increased by 261,361 people, which implies a 1.6% year-on-year rate.

She highlighted the management of the Government during this term in office on net employment creation and unemployment reduction. They have passed incentives to hiring, eliminated barriers to employment creation and advanced in the simplification of contract modalities, which went from 41 to the current 4: open-ended, temporary, training and internship, as appears in the hiring assistant available at the Ministry webpage since January 1st.

To this respect, the Minister of Employment and Social Security stated that, this month, every entrepreneur will be able to register any of these contracts via the Ministry webpage when they hire a worker and at the same time register them at the Social Security.


ADOPTED LABOUR MARKET REFORMS

The Minister mentioned some of the measures put forward by the Government, such as the entrepreneur contract, which compensates the hiring by small companies with additional tax deductions of up to 3,000 euro. 203,470 people have benefited from this measure, 76,500 of which are under 30.

She also mentioned the 50 euro flat-rate for self-employed workers who register at the Social Security for the first time. “This measure as fostered employment creation in a particularly intense way”, Fátima Báñez added. In fact, said reduced contribution for those who decide to create their own jobs has enabled, since its entry into force, 245,316 self-employed workers to register at the Social Security, 104,650 of which are young people.

ALMOST 90 000 OPEN-ENDED CONTRACTS THANKS TO THE FLATE-RATE

Fátima Báñez also pointed out that now that the “bloodbath” of unemployed people is stopped and the net employment creation is reached, the challenge is to increasingly improve the quality of employment. “Because quality employment is the major guarantee for social policy. Employment makes the Social Security system sustainable and this permits to develop a cohesive and prosperous society”.

In this regard, the Minister spoke about the measures implemented by the Government to promote stable hiring; among them stands out the 100 euro flat-rate Social Security contribution per month for the new fixed-term contracts, which entered into force on February 25th, barely four months ago.

Báñez announced that thanks to this measure almost 90,000 people (88,734) found a fixed-term job, 733 per day. Thus, 25% of the new fixed-term contracts which were signed throughout the last four months were concluded thanks to this initiative.

THE NEW EMPLOYMENT PORTAL

But despite employment creation and economic recovery, Fátima Báñez clarified that we need to continue working in order to provide more opportunities to people that do not have them. To do so, she stressed the need to make progresses regarding active employment policies.

In this respect, she highlighted the efforts that have been made to improve the programming and coordination of active policies that regions manage. She explained that the annual employment plans and the “Estrategia española de activación 2014-2016”, which will be made public in the next sectorial conference, organize the system and create incentives to increment the employment service yield.

Moreover, the Government is working together with regions for in order to improve the institutional framework and the means for the unemployed people to enter the labour market. “Modernization of employment public services will contribute to accelerate the transition towards employment”, stressed the Minister. She anticipated that these plans will be completed with a new set of actions that will include the “Estrategia plurianual de activación” and a catalogue of common services.

And, in this respect, it was anticipated that, before the end of July, the Employment and Self-Employment Portal will be launched, where all the offers of the regional employment portal, the Public State Employment Service and some private initiative portals will be brought together.

A NEW TRAINING MODEL 

The Minister also referred to the fundamental role of vocational training for employment as a tool for the improvement of workers’ employability and companies’ competitiveness in the long term.

In order to do so negotiations with social partners are being carried out within the new agreement, which will be based on the principles of efficiency, effectiveness, clarity and transparency as well as ongoing assessment.

“If Spain wants employment to be high-quality, stable and well-paid, we have to invest our efforts in promoting productivity and competitiveness and better-trained workers who are more productive, which means better-paid workers”-she stated.