OECD Economic Surveys: Spain 2023
Spain implemented sizable measures to cushion the impact of the pandemic and of the inflationary shock after Russia’s war of aggression against Ukraine. The economy has held up well, but public debt, which was already high, has increased because of the pandemic, making it urgent to step up the pace of fiscal consolidation. Public policy should continue to address Spain’s structural weaknesses. Growth potential is low and will remain so with the rapid ageing of the population. Fulfilling the country’s objectives to fight climate change will require a strong and broad commitment in favour of a cleaner energy mix and a more environment-friendly tax regime. Unemployment remains the highest in the OECD and the integration of young people into the job market remains challenging, although recent reforms have reduced the high share of temporary contracts. Improving educational and labour market outcomes among the young should entail strengthening the connection between the educational system and the labour market, supporting students at risk of falling behind, improving career counselling, and providing a more efficient public employment service. Boosting the low level of entrepreneurship among young people requires additional financial and educational support. More social rental housing in stressed areas would facilitate access to housing for young people.
SPECIAL FEATURE: INCREASING OPPORTUNITIES FOR THE YOUNG IN SPAIN
Also available in: French
Increasing opportunities for the young in Spain
Spain is a richer, healthier, more open, and freer country to live in today than one generation ago. However, young people in Spain have a difficult transition to an independent, productive, and happy adult life. Early school leaving and grade repetition are frequent, even if they have come down. Youth unemployment is among the highest in the OECD, and those young people who find work often face temporary and part-time positions, low-paid jobs, and subpar working conditions. Increasing funding for early childhood education and care, supporting students at risk of falling behind and improving career counselling can help more people make the most of their education. Labour market outcomes for the young can also be improved by strengthening the connection between the educational system and the labour market, including by fostering collaboration between SMEs to provide apprenticeships to students. A well-funded and better-connected public employment service is also key. Boosting the low level of entrepreneurship among young people requires additional support policies, both financial and educational, to compensate for skill shortcomings and difficulty accessing financing. A challenging transition from education to work, coupled with lack of housing and high rental prices, often means delaying independent life. A higher provision of social rental housing would make housing more affordable for more young people.
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