August 5, 2021

Two thirds of the money for long-term unemployed remained unspent | Economy

Registered unemployment: Job creation advances with 130,000 more members and closes a record October | Economy

The help system unemployed designed by the previous Government of Mariano Rajoy left without spending two thirds of the money intended to remove the long-term unemployed from the lists of job seekers. Of the 128.88 million charged to the General State Budgets destined to the Employment Activation Program in fiscal year 2015, only 43.98 (34.12%) were executed, according to a report from the Court of Accounts made public this Thursday.

The Sectoral Conference on Employment and Labor Matters set the criteria for the territorial distribution among the autonomous communities of the subsidies corresponding to the management of these competences and established that they should be released and made effective by fourths in the second half of each quarter. However, the transfer of these funds to the communities took place between November and December 2015, a "delay" that, according to the report, "could significantly influence the poor execution of the actions to which they are directed".

This at least was what Andalusia, Castilla y León and Valencia pointed out, that they did not execute any amount of the funds allocated to develop their competences in the Activation for Employment Program. The three said they could not put that money to good use because of the "delay in the materialization of the funds."

In March 2016, the unemployed help set up by the PP Government It was already revealed as a failure, as published by EL PAÍS. The aid had been collected by just over 25% of the estimated potential beneficiaries (105,500 out of 400,000). As for the budget, of the 1,200 million euros allocated (in several plans, not only the departure of communities of the Employment Activation Program) only 182 million of the 1,200 million consigned had been spent, according to data from the Ministry of Employment.

The Employment Activation Program was a specific and extraordinary program of temporary nature, aimed at long-term unemployed people with active employment and labor intermediation policies, managed by the Public Services of national and regional employment, which aimed to increase opportunities for employment. return to the labor market. It also included an accompanying financial aid managed by the Public Employment Service. The initial was extended twice and was active until April 2018.

The report of the Court of Auditors criticizes the poor execution and low efficiency of these employment programs. The definitive credits for the payment of the economic support to accompany the Activation Program for Employment in 2015 and 2016 were 850.19 million euros and 290.69 million, respectively. In fiscal year 2015, budget execution was "very low (18.89%), while in 2016 such execution was higher (43.00%)," the report highlights.

"The fundamental reason for the low budget execution of these credits was an unfortunate estimate of potential beneficiaries, which was 403,795 for the initial program, compared to 107,892 that were finally incorporated into it," adds the audit work .

The number of long-term unemployed, defined as those who have been unemployed for more than a year, doubled last August to those in 2008, before the economic crisis. If a decade ago this group represented 25.9%, this year already reaches 52% of the total unemployed.


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