Monday, February 26, 2024

More than 1.9 million unemployed are not receiving unemployment benefits

Amidst the controversy of the unemployment reform and its benefits, which is associated with the Minister of Labor, Yolanda Díaz, with the Minister of Economy, Nadia Calviño, because of their different approaches to this reform, the social umbrella which the Government has ensured that has been increased during the last legislature can be questioned after analyzing the data provided by the latest Active Population Survey (EPA) and the Public Employment Service (SEPE), which shows that almost two million unemployed people do not have access or the right to unemployment benefits.

This is confirmed by the study “The social cost of unemployment”, directed by Antonio Villar, Sara de la Rica and Lucía Gorjón García and prepared by the BBVA Foundation and the Valencian Institute of Economic Research (Ivie), which warns that 41% Of the more than 2,850,000 unemployed, they are long-term unemployed -those unemployed for more than one year -, and 28% remain unemployed for more than two years – about 700,000 workers -. In addition, two-thirds of the total do not receive unemployment benefits, which leads to 1.9 million unemployed people who do not have the right to receive them. Of them, only 700,000 have access to the unemployment benefit of 480 euros, so the number of unemployed without any kind of income or public assistance exceeds 1.2 million.

This means that almost one in three workers registered in SEPE as inactive do not receive assistance, a percentage that has increased by almost 20 points since 2009, mainly as a result of the high number of long-term without work, which amounted to 1.16. , where nearly 70% have been looking for work for more than two years, another reason why they have stopped receiving benefits. “The number of unemployed without access to unemployment benefits” constitutes a group of workers who are “gradually marginalized” and who find it “very difficult to find work,” said -says the report, which is part of the socioeconomics research program of the BBVA Foundation and the Ivie.

The study also emphasizes that 30% of the unemployed carry 90% of the social cost of unemployment, which is measured “as the loss of welfare generated by the lack of work in the population as a whole,” they explained. That 30% is basically made up of “over 45 years of age, who have been unemployed for more than two years, do not receive any benefits, have a medium-low level of education and are mostly women.” The data shows that “the fall in the unemployment rate is not enough to compensate for the deterioration of the welfare of people who remain unemployed, especially those who have been unemployed for a long time,” in addition to confirming that the situation of each unemployed person will improve or worse depending on the autonomous community you live in and what kind of unemployed person you are.

The study also emphasizes that the current unemployment suppression represents a “waste of resources and a reduction of personal well-being (loss of income and self-confidence) and social well-being (problems of integration and social cohesion ).” These “adverse effects increase in the case of long-term unemployment,” which is likely to be “exceptional,” or when the unemployed “are not entitled to any benefits,” the report’s authors warn.

The last EPA shows unemployment at 11.8% in Spain, compared to 27% that was almost reached in 2012. However, BBVA and Ivie warn that “this good number is not very positive if it is also analyzed.” the duration and coverage of benefits for the unemployed. In addition, they believe that this “inability of the unemployment rate to reflect social aspects” should lead to a change in its measurement.

World Nation News Desk
World Nation News Desk
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