A chronicle of labour and life precariousness that clips the wings of the youth
- Jul 24
- 9 mins
For over thirty years, young people in Spain have grappled with the highest levels of job precariousness (measured in terms of temporary employment) in Europe. Despite various legislative reforms that endeavoured to curb this issue, success was limited. It wasn’t until the labour reform passed in December 2021 that significant progress was made. However, did this reform truly put an end to the precariousness of youth employment?
A precarious job diverges from what could be considered a standard employment arrangement, lacking a stable, full-time contract and entitlement to certain social benefits. While somewhat oversimplified, temporary employment is perhaps the most commonly used indicator of precariousness. According to this measure, it’s been argued that levels of precarious employment among Spain’s young population have remained among the highest in the European Union for over thirty years. The labour market reform passed in December 2021 aimed to curb this situation. Did it succeed? The figures suggest so. However, young people perceive that little has changed. The reasons for this apparent contradiction are explained below. This is the chronicle of a necessary labour reform…, yet one deemed insufficient to mitigate the precariousness of youth employment.
Temporary and precarious youth employment
Eurostat, the statistical office of the European Union, reports that since the mid-1990s, Spain has consistently ranked highest in youth temporary employment across Europe. In the aftermath of the 2008 economic crisis, the percentage of individuals aged 16 to 29 with temporary contracts peaked at 57.5% in 2017. Prior to the crisis, temporary employment rates were even higher, hitting 63.2% in 1995. Coupled with elevated levels of youth unemployment, as discussed further on, it’s clear that young Spanish workers have faced the highest levels of precarious employment in Europe.
Illustration ©Patricia CornellanaThe soaring unemployment levels of the 1980s warranted significant changes in the Spanish labour market, aligning with the prevailing neoliberal ideology of the time. The resulting “flexibilising policies” led to a widespread prevalence of temporary contracts among young people entering the workforce from the late 1980s onwards. The contrast with older workers, who had permanent contracts, fuelled the perception of a generational divide, where “young people, albeit excessively well-prepared” (later labelled “Generation X”), became “outsiders” on the job market, while older “insider” adults enjoyed the protection of unions. However, the reality in the Spanish labour market didn’t (and still doesn’t) neatly fit this narrative of polarisation. It wasn’t about young people versus adults, but rather between sectors that embraced flexibility and those that did not. Consequently, many presumed “insiders” among adult workers also found themselves in precarious employment situations, largely influenced by the sector in which they worked.[1]
Failed attempts, until the 2021 reform
The onset of the Great Recession in late 2007 laid bare the enormous fragility of the Spanish labour market, which had already held European records for temporary employment for over a decade. The ease with which temporary workers could be dismissed, or their contracts simply not renewed, resulted in unprecedented job losses. Once again, it was the younger generation that bore the brunt of the impact. Following the crisis, the labour reforms of 2010 and 2012 served only to exacerbate job instability for workers in the most precarious employment sectors. These reforms, primarily affecting the job market situation for younger people, combined with austerity measures that reduced numerous social benefits, further compromised the prospects of independent living for this group.[2]
Following the onset of a new employment crisis sparked by the COVID-19 pandemic, which once again hit young workers hard, a reform with notable implications for job security was finally passed. In December 2021, the left-wing coalition government, following an agreement with social partners, enacted legislation that imposed significant restrictions on the use of temporary contracts. Just over a year ago, in May 2023, the European Commission commended this labour reform.[3] Initially, there were high hopes that young people would reap the most benefits from this legislative change. True to expectation, by 2023, following the reform, the percentage of temporary contracts among workers aged 16 to 29 had fallen to 36.2% (as opposed to 63.2% in 1995). Eurostat’s annual data for 2023 also indicated that Spain had descended several ranks in the list of countries with the highest rates of youth temporary employment. Historically and in comparison to other countries, the reduction in temporary employment has been significant.
The annual youth unemployment figures for 2023 also indicated favourable trends, viewed both longitudinally and in comparison with other European nations. By 2023, youth unemployment had decreased to 21.4%, almost half of the rate recorded in 2013, which stood at 42.4%.[4]
Are there grounds for complaints about precariousness?
The decline in temporary employment and youth unemployment are unquestionably positive developments. So why do young people (and adults alike) still perceive precarious employments as a persistent issue among employed youth?
Labour precariousness is starting to manifest in various contractual forms beyond temporary hiring, including involuntary part-time employment.
There are several factors at play. Examining employment data,[5] we first notice that precarious employment is taking on different contractual forms from temporary contracts. Post-reform, there’s been an increase in young people with only compulsory education finding themselves in involuntary part-time work. Historically, these roles have been concentrated in low-paying service sector jobs, resulting in even lower incomes when working on a part-time basis. Secondly, there’s an increase in job turnover. While companies are offering more permanent contracts, they’re also terminating permanent employees more frequently than before. Nonetheless, the severance pay for dismissal is higher than what was previously provided at the end of a temporary contract. Lastly, in some sectors, a practice bordering on illegality is emerging: certain companies are prolonging the probationary periods of permanent contracts without finalising the hiring. This allows them to dismiss workers without incurring the costs associated with terminating a permanent contract.
Despite historically low youth unemployment rates, access to housing remains out of reach due to the absence of policies aimed at fostering the emancipation of young people.
But there’s more to it. The wages earned by young workers are disproportionately low considering the inflation rates. Furthermore, the focus on low-cost service sector specialisation leads to high levels of overqualification. Moreover, despite historically low youth unemployment rates, access to housing remains out of reach due to the absence of policies aimed at fostering the emancipation of young people, as observed in other European countries. In this context, many young people find it challenging to envision a secure life plan. While contractual stability is important, even with improved job security, the desired overall life stability remains elusive.
The available data indicate that precarious employment has diminished for certain cohorts of young people, particularly those with higher levels of education. However, can it be asserted that the “life instability” experienced by young individuals has also been alleviated? Probably not, even for those who no longer face the extreme levels of job insecurity witnessed several years ago.
References
Hvinden, B., Hyggen, C., Schoyen, M. A. and Srovátka, T. (editors). Youth unemployment and job insecurity in Europe. Problems, risk factors and policies. Edward Elgar, 2019.
O’Reilly, J., Leschke, J., Ortlieb, R., Seeleib-Kaiser, M. and Villa, P. (editors). Youth Labor in Transition. Inequalities, Mobility, and Policies in Europe. Oxford University Press, 2019.
Prieto, C. Las metamorfosis del trabajo y de la relación salarial. El caso español. Catarata / Fundación Primero de Mayo, 2024.
Verd, J. M. (coordinator). Enquesta a la joventut de Catalunya 2022. Volum 1. Trajectòries i transicions. Agència Catalana de la Joventut, Departament de Drets Socials, Generalitat de Catalunya, 2023.
[1] Häusermann, S. and Schwander, H. “Varieties of dualization? Labor Market Segmentation and Insider-Outsider Divides across regimes”. The Age of Dualization. The Changing Face of Inequality in Deindustrializing Societies, 27-51, edited by Emmenegger, P., Häusermann, S., Palier, B. and Seeleib-Kaiser, M. Oxford University Press, 2012.
[2] López-Andreu, M. and Verd, J. M. “The impact of neoliberal policies during the Great Recession on youth transition regimes in Spain and the UK”. Critical Sociology, 46(6), 835-850. 2020.
[3] European Commission. In-Depth Review for Spain. 2023. Commission staff working document (COM(2023) 632 final), 7-8. 2023. via.bcn/mpm050RzmOz
[4] The data for Catalonia reveal a similar trend, albeit with slightly more favourable figures. In the fourth quarter of 2023, temporary employment stands at 30.8%, with unemployment at 18%.
[5] Verd, J. M., Godino, A., González-Heras, A. and Rodríguez-Soler, J. “Escaping the trap of temporary employment: Precariousness among young people before and after Spain’s 2021 labour market reform act”. International Journal of Social Welfare, 1-24. 2024. via.bcn/ZyVh50RzmRV
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