Spanish labour market developments: from the 2010 reforms to spring 2019 elections

The economic and real estate crisis that Spain suffered in 2008 caused massive job losses and pushed the unemployment rate up to 26% in 2013, an unmatched level in Europe (except in Greece). Admittedly, the reforms conducted in 2010 and 2012 introduced more flexibility and restored cost competitiveness and employment, but the Spanish labour market has not yet been completely re vived . The employment and unemployment rate s have not returned to their pre-crisis levels and many structural weaknesses remain (youth and long-term unemployment, low labour skills, high incidence of precarious work and labour market duality). These weaknesses then have a detrimental impact on potential growth by limiting productivity gains and the country's ability to use its labour resources. In the wake of the parliamentary elections of 28 April, employment issues are very important. This election could be an opportunity for Spain to get a government that is genuinely committed to tackling the structural weaknesses in the labour market. The four major political parties are aware of this and are proposing measures to address it, whi ch are broadly in line with the OECD's recommendations. Nevertheless, the 28 April elections resulted in a fragmented Parliament and no party has obtain ed an absolute majority by itself. From then on, the next government, even though it is the result of a coalition, will very likely be a minority and such a situation will therefore complicate the vote on structural reforms that Spain needs.