News, August '09

€420 for some long term unemployed - but most get nothing

On 18th August unemployment offices opened to long lines of claimants, who hoped against hope to be included in the new offer of €420 for all whose unemployment pay had finished on 1st August. This is the first time that such a payment has been forthcoming from the social security, which only pays for specific time after people lose their jobs. After that people have had to find new work or rely on families or charity to survive. In the current downturn a lot more are in this situation and over a million lost their pay before the 1st August date... and will remain without a cent.

The government is having to draw the line somewhere in its hand-out, since finances are at a minimum. Just 340,000 are to get the new payments, while 1.2 million even longer unemployed get nothing. The new handouts are linked to a requirement for people to go on vocational training courses, so as to be better prepared for new job opportunities. But just as money is limited, so are places in the classrooms. Meanwhile, finance chiefs are warning that the rich will have to pay more tax to cover the deficit.

Nevertheless, as protests immediately came in, the government found itself having to announce a reconsideration, yet to be clarified. With other government employment policies discouraging employers from taking on new workers, it looks like the effects of the crisis on unemployment in Spain will last for a long time. Some 4 million were unemployed at 1st August. Between June '08 and June'09 1.7 million more were added to the list.