Policies to promote employment increased by 4.7% in the General State Budget of 2019, but this increase does not apply to all of its items. The Ministry of Labor, headed by Magdalena Valerio, has been critical of the effectiveness of hiring bonuses for companies, a common complaint of trade unions. In the socialist accounts, the Executive reduces this aid for companies by 79 million, while other policies such as training and guidance obtain more funds.
The total budget for policies to promote employment amounts to 5,985 million euros in 2019, 4.7% more than in 2018. The increase is the highest since 2016, when a rise of 8.17 was budgeted for the year previous. The Executive reminds that this item "includes the so-called active employment policies, an essential instrument to combat unemployment and improve the functioning of the labor market, making it more efficient".
These almost 6,000 million euros are distributed in two axes: the "actions of insertion and incentivation to recruitment", with an endowment of 3,358 million euros, and vocational training for employment, with 2,523 million.
Within the former, the Executive has cut bonuses for hiring for companies that hire. In the 2018 Budgets, 1,934 million euros were allocated to this point ( 108 million more than in 2017), while in 2019 the expenditure is reduced by 79 million, to 1,855 million euros.
These bonuses in Social Security contributions paid by companies will have as their objective "to prolong the active life and favor the creation of employment of the groups with greater difficulty of access to it, such as persons with disabilities or at risk of social exclusion, 45 years old, victims of
gender violence and young beneficiaries of the Youth Guarantee, among others ".
The bonuses work as a kind of subsidy for the companies that they hire: in certain circumstances, the companies do not pay or pay less Social Security fees for those workers during a period of time. In recent years the Government of the PP approved several types of bonuses, although it is a widely criticized system: experts and unions say that, except in very specific cases, has a "deadweight" effect, ie, that money is spent public to support a contract that companies would also do without that help, Explain Ana Requena.
The Secretary of State for Employment, Yolanda Valdeolivas, has mentioned on several occasions that the Ministry is studying a reconfiguration of these bonuses, to maintain only those whose effectiveness is proven. In total, the Government estimates in its public accounts that the hiring bonuses will benefit "825,446 people".
10.5% for training for employment
The second axis of action of the policies of promotion of the employment, the professional training, increases 10,5% in the Budget of 2019 with respect to the one of the previous year. In total, 2,523 million euros this year.
The item that increases the most with respect to 2018 is "Employment and training opportunities", endowed with 373 million euros, which increases by 34%. It is followed by training for employed workers, with 1,221 million euros (+ 11%) and training for the unemployed, with 857 million euros (+ 8.2%). On the other hand, the item for "Flexibility: training and requalification" loses 38% of funds, up to 73 million.
The Executive also highlights in the budget project the 470 million euros to enhance professional guidance, with an endowment of 87 million
of euros for the extraordinary program of orientation and promotion of employment. This year, the network of counselors of the public employment offices will be reinforced with 3,000 technicians.
The accounts also include the 670 million euros of disbursement in 2019 of the first phase of the Plan of Shock for Youth Employment, which will reach a total of 2,000 euros of investment in the three years of the plan.