Almost 700,000 households are without any type of income

Question

Almost 700,000 households are without any type of income

Answer 1

Six years work crash cast a bleak balance. The long-term unemployment has reached levels that threaten to become entrenched in the Spanish society for many years. The number of households in which all members are unemployed has reached 1.8 million. And the mixture of both data comes a devastating cocktail: families in which no member has income has doubled since the crisis began, and are 686,600, according to the Labour Force Survey.

The long-term unemployment is likely to become one of the wounds of this crisis that the longer it takes to heal. As time has passed and no employment decline reversed, the figure grew. Those who spent more than a year without work and number over 3.5 million unemployed, 61% of all unemployed. The problem is exacerbated because this group of more than 2.3 million are in that situation more than two years.

Spending a lot of time off work, is one of the worst burdens that are unemployed to re- enter the labor market. At the time of hiring, companies prefer to opt for someone who has just joined the workforce or who have lost their jobs recently. No easy out that many of the unemployed come from the construction, a sector that continues doldrums and likely will not have its former vigor. It does not help the poor training of many of those who make up this group. Hence, experts warn that long-term unemployment generated during this crisis will require much time and resources - to - read money that can be solved.

Talk of active policies, training, career guidance and also extend protection (benefits and allowances). So do the unions. Because the lack of job opportunities is just one of the faces of long-term unemployment. The other is the exhaustion of unemployment insurance, in its contribution as in healthcare, which drive much of this group at risk of social exclusion.

This danger we face many of the 1.8 million households in which no member works. But not all, as this is not to say that none of them has income. It may be the case that at least one of its member receives unemployment benefit, pension or any kind of income as a rental.

Sure who faces the risk of exclusion are 686,600 families in which not one of its members earn any kind of income. At the beginning of the crisis in mid 2007, this group supposed to just half. The passage of time has made ​​the problem will double. Especially in recent years, mainly due to the structure of unemployment insurance, which initially cushioned the impact.

Since 2009, the worst year of the crisis, unemployment insurance expenditure amounted to 30,000 million annually. Nearly three percent of GDP. But this does not mean that those who lost their jobs at the beginning of the crisis remain some help, as the unemployment benefit (the tax part of the first aid and perceived) has a maximum duration of two years and Subsidy except in some cases, not charged until retirement. Further cuts approved in 2012 tightened access to the subsidy for most of his potential third beneficiaries.

In addition to households with no income data provided by the INE, another pointing in the same direction: the rate of coverage of unemployment benefits. According to the Ministry of Employment, last November, the latest month with available data, 61.4 % of the unemployed registered in labor offices have some form of help, well below the maximum percentage that marked years before, when it peaked at over 80 %.