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Young, Well-Educated and Unemployed

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Young, Well-Educated and Unemployed Young, well-educated and unemployed: The deterioration of social support and the labour market in the Canary Islands Canary Island report in the Work Package 4 Income and Social Protection for the DRIVERS project1 Sara Darias-Curvo and Moisés Betancort University of La Laguna Abstract This report presents data from the Canary Island on young graduates in the Canary Islands, asking how they perceive the labour market and the social protection system. The Canary Island has the higher rate of youth unemployment in Spain. Transversal data were collected from Quality of Life Survey in National Institute of Statistics (INE) to build up a picture of Spain and the Canary Islands in which the crisis has systematically deteriorated the welfare system in many ways. In this report, we collect qualitative evidence from a sample of graduates in nursing and social work from the University of La Laguna in Tenerife that have sought employment for at least one year, or who have lost a job in the last nine months. 1. Introduction Spain is one of the EU countries that has felt the effects of the global economic crisis most acutely. The fast growth of unemployment was the first result of the economic depression, increasing the rate from 8.3% in 2007 to 26.4% in 2013 (the highest rate in UE) [1]. According to data from Eurostat, Spain was one of the countries in which unemployment increased the most rapidly compared to other EU countries. In just 12 months nearly 1.5 million jobs disappeared. In the last semester of 2008 a vivid cycle destruction of jobs began: the most serious Spanish society has ever faced. From 2008 until 2013 Spain lost 3,641,300 jobs, almost one in five of which had started before the crisis, to increase the unemployment 1 Suggested reference: Darias-Curvo S & Betancort M. Young, well-educated and unemployed: The deterioration of social support and the labour market in the Canary Islands. Case study report produced as part of the 'DRIVERS for Health Equity' project. University of La Laguna. La Laguna: 2015. Available from: http://health-gradient.eu/. The research leading to these results was done within the framework of the DRIVERS project (www.health-gradient.eu) coordinated by EuroHealthNet, and has received funding from the European Community (FP7 2007-2013) under grant agreement no 278350. rate to 26.26% in the second quarter of 2013 [4]. The rapid growth of unemployment was in the private sector and in the public sector due to the austerity measures that the Spanish Government adopted. Table 1 shows the unemployment rate in the range of 20 to 34 years old during the hard time of crisis in Spain. We compared the national data to Canary Islands data for the purpose of this report. Spain Canary Islands 20-24 25-34 20-24 25-34 years years years years Men 2014TII 12.3 25 10.7 26.1 2013TIV 12.1 26.8 12 28.2 2012TIV 12.5 29.2 13.6 26.6 2011TIV 13 28.5 9.3 30.7 2009TIV 14 30.5 12.6 30.6 Women 2014TII 11.5 26 10.4 24.2 2013TIV 11.7 27 11.7 28.9 2012TIV 12.4 28.4 14.9 29.9 2011TIV 12.7 28.6 11.4 31.6 2009TIV 13.7 31.4 14.4 26 Table 1. Percentage from the total of unemployment in by range of age. Data from Spain and Canary Islands. The level of unemployment in Spain, and youth unemployment in particular, is startling, and matched in the European Union only by Greece. It reached this level despite it having the best-educated generation ever. Data from Caritas Europe Report 2014, detailed that the 2012 employment rate was 59.3% (Eurostat, 2013f), and it was lower for older workers (44.5%) and for women (55.5%) (European Commission, 2013gg). One of the worst falls in employment in the EU (-4.3%, or -770,000 people,) was noted in the first quarter of 2013 (European Commission, 2013a, p.13, Table 20). There were also very high levels of temporary employment (European Commission, 2013gg). Temporary contracts are particularly characteristic of young employment (age 15-24) but unlike other countries (such as Germany) the majority of young temporary workers in Spain are on very short contracts (mostly 1-3 months and 4-12 months) (European Commission, 2013a). The fall in employment has particularly affected the construction industry and the public sector (European Commission, 2013gg) (see Table 2). 2 Youth Number of Share of Long-term Unemployment Rate Unemployment Rate Unemployed Unemployment (15-24) 2012 5,769,000 25% 44.5% 53.2% 2011 4,999,000 21.7% 41.6% 46.4% Table 2. Source Eurostat, 2012, Eurostat 2013. Youth Rate: Eurostat 2013. Note. Unemployed number, rate and share of long-term unemployed relates to ages 15-74. Unemployment effects the daily life of families. Decisions about how to cope with lower levels of household income is the first issue that a family faces. Furthermore, in Spain many families lost their homes; in 2012 30,050 families were evicted from their homes for not paying their mortgages, and 43,172 for not paying their rent. Data shows that 70% of housing loss is associated with loss of employment. At the same time, 70% of displaced households had at least one child in their care and 77% of evicted families reported experiencing anxiety or depression [2]. The second stroke was the policy of cutbacks implemented in 2010 by the Spanish Government, which led to a reduction of 10.6% investment in education and 36.4% in social support policies between 2010 and 2013. Austerity measures in the public health system resulted in irregular immigrants not being entitled to healthcare, the system co-payment being extended to the entire population included retirees, and an increase in waiting times of up to six months to see a specialist. As a result, chronic or those suffering from long-term sickness now contribute more to the cost of their drugs. Social cutbacks have increased the Gini coefficient from 31.9 in 2008 to 35 in 2012 [3]. The risk of poverty in Spain has also increased, from 24.5% 2008 to 28.02% in 2012. However, the risk varies by region: southern regions see risks in the range of 31% to 34% (the Canary Islands’ 33.4% being the second highest), while northern regions have a lower risk, from 8% to 16%. As expenditures in social protection have declined due to cutbacks, the response of social protection systems has deteriorated. The social protection system in Spain is based on unemployment benefits and the right to access to universal health care for those who have been in paid employment. For young people who have not previously entered the labour market, access to free health system subsequently depends on their families, in this case the parental contributor. Official data from the Ministry of Health and Social Services shows that in 2010 the number of users helped by social services increased by 19.5% 3 compared to 2009. However austerity measures have seen the social service budget decrease by 65%. In 2013 the reduction of budget resulted in 257,126 fewer users being cared for. Of these, 31,264 were in home care, and therefore a matter of basic social services, and 53,963 participated in prevention programmes and insertion. The absence of publicly funded support is in some part compensated for by third sector organisations. Caritas [a social and religious organisation] announced not so long ago [summer 2014] that it was serving more than one million people across Spain. The sheer number of people dependent on their support and services is an indicator of just how severe the crisis and cuts to social spending and policies has been. As the length of unemployment increases, the number of people protected or covered by the social protection system decreases, especially for woman. Data show that every day there are more people without some sort of unemployment protection. International organisations such as the OECD have begun to warn about this: there are more than 2.5 million long-term unemployed with no coverage: three out of four people who have spent more than a year unemployed (60% of total unemployed) do not receive any benefit. The time spent unemployed and gender are two variables that clearly affect the chances of being a benefit recipient; being a woman in a long unemployment period is to have a 78% chance of not perceiving benefit [4]. The number of families in which no family member receives any unemployment benefits increased to 768,000. The loss of family income implies an adjustment in the everyday life of families. Data from the third quarter of 2013 showed that in Spain the rate of unemployment protection (33.7%) is 1.5 points less than in 2012. Young people suffer the lowest rate, only one of six has any type of unemployment protection. Women have protection ten points lower than men. [4] The risk of poverty threshold decreases as incomes decrease. In Spain most of the adjustment relating to the crisis is seen through decreasing wages, which leads to greater difficulties in the daily lives of many families and increases the poverty level. In some cases we speak of energy poverty. There are families who do not consume energy because they cannot pay the monthly payments. Families invest their low earnings in the payment of housing and food. This is reflected unequally in Spain but especially when comparing the Canary Islands with the rest of Spain (Table 3).
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