Spanish Labor Market Reform Key to Lowering Unemployment Rate
The Spanish labor market has high unemployment and a dual structure. Compared to other countries, Spain's collective bargaining and severance payments for permanent workers stand out. A study suggests that changing the bargaining level could reduce unemployment. To decrease temporary work, protection for permanent workers should be reduced. Reforms in collective bargaining and worker protection could significantly lower the unemployment rate. The 2010 labor market reform aims to address these issues, but its impact is still uncertain.