The Labour Reform implemented in Spain has been an attempt to remedy the employment crisis

(R.D. 3/2012, February 10, of urgent measures for labour market reform)

And, what happened in the Spanish labour market since

February 2012?

2007 2008 2009 2010 2011 2012 2013 2014 201514,500.0

15,000.0

15,500.0

16,000.0

16,500.0

17,000.0

17,500.0

18,000.0

18,500.0

19,000.0

19,500.019,232.8

19,129.8

18,019.0

17,667.517,430.6

16,845.9

16,298.0

16,553.8

17,007.8

Afiliation to Social Security Annual average in thousands of workers

In 2015 the number of workers registered

to Social Security is lower than in 2011

by 423.000 jobs: THERE ARE NO MORE JOBS THAN BEFORE THE REFORM

423.000 JOBS LESS

Despite the intensetemporary job losses

caused bythe crisis and 2012 labour

reform 23.6% of

CONTRACTS still areTEMPORARY.

Temporality rate (%) for EU countries, 2014

ONE OUT OF FOUR JOBS ARE TEMPORARY

The percentage of part-time workers is 16.3%,

but 61.8% of those working part time do so

involuntarily: INVOLUNTARY PART-TIME EMPLOYMENT

HAS BECOME A STRUCTURAL ELEMENT

OF THE LABOUR MARKET IN SPAIN.

Part-time employment rate (%) and involuntary employment proportion, 2014

INVOLUNTARY PART-TIME EMPLOYMENT ROCKETS

2008 2009 2010 2011 2012 2013 2014 20150

5

10

15

20

25

30

11.25

17.86

19.8621.39

24.7926.09

24.44

22.37

Unemployment Rate(%)

UNEMPLOYMENT RATE

remains higher thanbefore the reform.

At 22.37%. according to the Labour Force

Survey (LFS) published in July

2015

UNEMPLOYMENT AFFECTS TO 1 OUT OF 4 WORKERS

2008 2009 2010 2011 2012 2013 2014 20150

10

20

30

40

50

60

24.45

37.73

41.48

46.19

52.86

55.4853.2

49.2

Youth unemployment rate(%)Youth unemployment rate

remains higher than before the reform. In July

2015 stood at49.2%

HALF OF THE YOUTH REMAIN UNEMPLOYED

2008 2009 2010 2011 2012 2013 2014 2015

21.49

28.44

42,55

48.14

52.33

58.4461.78 61.18

10.01 10.43

16.97

24.64

29.89

36.08

42.52 43.7

Long-term unemployment

Desempleados más de 1 año (%) Desempleados más de 2 años (%)

The percentageof unemployed

workers for moreThan a year and 2 years, has grown steadily since the

labour reform: THERE IS A GROWING LONG-TERM

UNEMPLOYMENT.

UNEMPLOYMENT AFFECTS TO 1 OUT OF 4 WORKERS

2008 2009 2010 2011 2012 2013 2014 2015

73.5975.48

78.44

70.67

65.81

62.26

58.85

55.72

Unemployment cover rate (%) Annually average

The percentage ofunemployed workers

without benefitsIt is growing since the

labour reform: COVER RATEDECREASES.

HALF OF THE UNEMPLOYED DO NOT HAVE UNEMPLOYMENT BENEFIT

Industria Construcción Total Economía

157.16

105.07

67.8460.81

73.55

55.38

Average length of contracts (on daily basis)

20102015

CONTRACTS are getting shorter. INDUSTRY, so far the sector with

increased stability in new contracts, it has become more

precarious

THE LENGTH OF THE CONTRACTS IS TWO MONTHS OR LESS

2015: JOB INSECURITY AND TEMPORARY CONTRACTS HAVE REACHED THE INDUSTRIAL SECTOR

2010 2015

85% 91%

15%9%

(%) Contratos temporales sobre el total de la Industria(%) Contratos indefinidos

2010 2015

69%83%

31%

17%

(%) Contratos de obra y servicio sobre el total de la In-dustria(%) Resto de contratos

In the INDUSTRY, the percentage of TEMPORARY CONTRACTS

It has reached 91%. And specifically work and

service contacts, amount 83%

Both type of contracts have increased since

20106% and 14%, respectively.

In the INDUSTRY,the percentage of all

contracts lasting 7 days or less has risen from 7% to

28% in 5 years.

2015: ONE OUT OF FOUR CONTRACTS IN THE INDUSTY LASTS LESS THAN 7 DAYS

2010 2015

7%28%

93%

72%

(%) Contratos de menos de 7 días sobre el total de la Industria(%) Resto de contratos

Never before in Spain somany workers have been

loosing their jobs in just one day. Why has this happened now?

• PRECARIOUS CONTRACTS

• INCREASED TEMPORALITY

• LACK OF BUSINESS CONFIDENCE

• LACK OF AN ECONOMIC MODEL WHICH CREATES STABLE

EMPLOYMENT

WHAT SHOULD WE DO TO CHANGE THE SITUATION AND COME BACK TO QUALITY JOBS, WITH RIGHTS?

EUROPEAN SOCIAL MODEL

No compete withWAGES DEVALUATION

NEW ECONOMIC/PRODUCTION

MODEL

Encourage a State and European INDUSTRIAL

POLICY

STATE AND EUROPEA INDUSTRIAL POLICYBased on promoting:

Environmental industry

Green energies

Investment on R&D and innovation

Investment on infrastructures

Social dialogue / Collective Bargaining

Harmonization of laws and labour conditions

Investment on education and training

PRECARIOUSNESS AND WAGES DEVALUATION:

GENERATE POOR WORKERS

DO NOT RECOVER JOBS

DO NOT FACILITATE THE ECONOMIC AND SOCIAL RECOVERY