Spending on unemployment benefits increases by 10% as unemployment rate declines

So far this year, SEPE has assumed the following costs: 5.4 billion euros This support can only be received by those who have exhausted their contributions. The bulk of this amount is intended to exactly cover the subsidy that people aged 52 and over receive. 453,000 Spaniards People who find themselves in that situation. They are almost 55% Of the 834,197 citizens included in this financial assistance, called “aid” by the Ministry of Labor. In November last year, when the reform was launched, 762,141 Spaniards received this benefit, of whom 442,811 were aged 52 and over. Less than a year ago, the beneficiaries of this measure were designed to be older people. The last moment of active life The number of people who do not lose their rights when they retire increased by 3%, widening the gap with what happened in the labor market. increase in employment According to the EPA, 2.5%; Decrease in the number of unemployed people 5%, according to the latest data from the ministry.

This general increase in subsidy expenditure is explained both by the increase in the number of beneficiaries and by the economic situation assumed by the National Treasury after the changes approved by Parliament with the approval of Podemos, which had to maintain the economic situation of this program. The monthly amount received by people aged 52 and over is 480 eurosHowever, the key lies in the amount of contributions that the state pays. 125% based on SMI, 1,381 euros. That is, the Treasury assumes monthly payments. 502 euros per month for social security for this group.

Another part of the explanation for subsidy spending is seen in the increase in the amount people under 52 receive. Since November 1st, the amount has passedor 480-570 euros per month90 more on each payroll. Six months from that moment it drops to 540 euros. Up to 480 euros during the remaining subsidy period.

The generation gap is also transferred to unemployment aid. 70% are over 50 years old Recipients of subsidies. Approximately 540,000 people are in this situation, and while there are 230,000 people under that age group, the majority are concentrated in people over 40 years old. On the contrary, 42% of recipients of contributory unemployment insurance (granted after up to two years of unemployment) are under 40.

“Demoralizing” work

Along with the reform of subsidies, employment subsidies (CAE) were also included to help achieve a balance between employment and employment. Almost until September 69,000 people According to the Labor Party, in such circumstances; Still a minimal number. In fact, subsidies are so entrenched among older people because “there are many factors that prevent them from working as planned,” points out José Ignacio Conde Ruiz, professor of economics at UCM and deputy director of Fedea. “We have to encourage the activation of this group,” he suggests. Permanence of employment policies and aid At work.

Currently, that potential can only be realized in the following periods: 6 months. “We need this group to tackle population aging itself, because there are fewer and fewer young people,” said Conde Ruiz. And it proposes a type of salary subsidy that can be reduced if the person’s salary increases.

Verified by the Independent Fiscal Responsibility Authority (Airef). « Subsidy period has been extended Unemployment as a result of the 2019 reforms is an issue that is not substantively addressed in the 2024 regulations. He also pointed out that there is a “cumulative effect” on recipients over the two years before the minimum age for receiving aid. when this happened From age 55Most companies extended the activities of their employees until that moment so that they could take advantage of the subsidy. And when that dropped to 52, the average age also dropped.

Now, the government Evaluation of how it worked A subsidy will be provided for the first year. After the conflict between Yolanda Díaz and Nadia Calviño, this was a commitment from the Ministry of Labor, not the Ministry of Economy.

The situation is self-employed This aid is also sneaking around. Second Vice President Yolanda Díaz closed the door to collecting retirement benefits, a measure requested by ATA, UPTA, and Uate, until retirement reform is completed.