Spain’s Labor Laws Hinder the Unemployed
Despite an economic bailout, the future may still not be bright for Spain’s economy. Financial experts say that while the country’s banks have lost substantial amounts of money in the real estate crash, “Spain’s job woes are due largely to labor laws that protect older workers at the expense of younger ones,” writes usatoday.com. A heavy focus on labor union rights was developed after the Franco regime ended in 1975, but it appears that many of these laws are now exhibiting retroactive effects. Because long-time workers in less modernized industries receive bonuses and benefits from the government and are able to maintain high paying jobs, “younger workers aren’t being hired because companies fear they cannot afford them in the long term,” explained USA Today. Though Spain has recently relaxed its labor laws in many respects, many economic analysts still dispute the direction in which the economy is headed.
