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Preparing the Basque Country, Spain for the Future of Work

image of Preparing the Basque Country, Spain for the Future of Work

COVID-19 is testing the Basque Country’s (Spain) resilience. Before COVID-19, employment indicators were recovering from the 2008 crisis, while automation of production was underway. Job quality remained low despite rising educational attainment in the region. COVID-19 is likely to accelerate structural changes in the labour market, including automation and digitalisation. Firms may increasingly look to technology as a way to pandemic proof their operations, while individuals may develop preferences for automated services as opposed to face to face contact. This OECD report sheds light on the potential impacts of automation on the Basque labour market, including which types of jobs and groups of workers are most likely to be impacted, in light of COVID-19 and other labour market changes. The report also highlights the critical role to be played by employment services, training policies and social dialogue to help people and firms make labour market transitions while upholding social cohesion. The report delves into how the Basque Country’s employment and skills system can continue to be at the front line as the crisis evolves.

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Assessment and recommendations

The COVID-19 crisis is creating a shock in the Basque labour market, interrupting the prolonged economic recovery that has taken place since the 2008 crisis. Prior to COVID-19, unemployment had continued to decrease in the region, falling below 10% in 2019 – lower than the Spanish average of 14% but double the OECD average of around 5%. In March 2020, employment protection measures helped limit an initial surge in redundancies due to lockdown measures to limit the spread of the virus.

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