Spanish Property Insight › Forums › Spanish Property Forums › Real Estate Topics, News & Discussion › Spanish Unemployment Cost and Housing market Support › Re: Re: Spanish Unemployment Cost and Housing market Support
In most of the EU, the unemployment benefit is around 80% of the final salary. It was similar in UK. Mrs Thatcher changed it. Realising that this could not be sustained due to mining, steel workers and a shift of economy from industrial, manufacturing to service sector.
I sit on the fence on this one as I can see both arguments. If a person loses his/her job his expenses continues e.g rent, light & heat, food etc. So paying them 80% of the final salary mean that they can live with dignity and no holidays, eating out etc.
On the other hand when a large number of people are unemployed the benefits paid out are under stress. Having taken this view the cost of employers contribution in Spain is very high and as such the payment of 80% of final salary should be met. For how long is another question.
A economy which has not been modernised, inflexibility of labour, irrational employment laws, all these have to be modernised, better training and industrial relations is required. If the circle has to be squared.