August 5, 2021

Unemployment subsidy for 114,000 more unemployed

Unemployment subsidy for 114,000 more unemployed

Government and social partners yesterday gave new impetus to the social dialogue table, one of five open to update labor market conditions. The technical teams of the Ministry of Labor, CEOE, Cepyme, CC OO and UGT put five points on the agenda on the work table, although they only addressed three. The main one was the extension of aid to the long-term unemployed over 52 years, instead of the current 55, who will have to wait until the next day 29 (date of the next meeting) for the objections raised by employers. The bosses asked yesterday the Ministry, which according to sources consulted by this newspaper, was in a hurry to approve the matter, that, in addition to the subsidy, the beneficiaries are given training in order to reinsert them into the labor market and not condemn them to charge a subsidy for 13 years or that the subsidy may be compatible with some type of work activity.

As LA RAZÓN has learned, a total of 114,000 more people will be able to benefit from these grants (those that were excluded in 2012 as a result of budget cuts), which will be added to the current 258,000 recipients. This agreement, which will be incorporated into the General State Budgets for 2019, will entail an additional disbursement of 1,250 million annually, according to the Government. In total, there will be 372,000 people who will benefit from this program of aid to the elderly and long-term unemployed.

Unemployed and over 50 years

The Ministry of Labor that Magdalena Valerio heads promised before the summer to present to the social partners and the autonomies a plan to reorient the non-contributory aid, those that are received once the beneficiaries have exhausted the end of unemployment benefits. The measure is aimed at the long-term unemployed, those unemployed who have no other income and the older ones.

According to the latest data published by the National Statistics Institute of the EPA for the second quarter, in Spain there are 893,300 people over 50 years unemployed in June of this year. Of this figure, 388,000 correspond to workers between 50 and 54 years old. They represent the third age group that most unemployed contributes to the EPA, behind those between 45 and 49 years, and those between 40 and 44. Half of the unemployed between 50 and 54 years, exactly 192,700, have two or more unemployed years. With more than 55 years, the EPA reflects a total of 299,100 unemployed persons who have not returned to work for at least two years.

The previous government proposed in April to extend the duration of the subsidy to the long-term unemployed with family responsibilities from 30 months to 72 months and also slightly the amount of the benefit, in an attempt to unify in a single aid, the so-called Complementary Income Unemployment (RED), which corresponded to Prepara plans, Active Insertion income and Employment Activation Plan. In this plan (which can not be carried out by the opposition of the unions and PSOE, which insisted that the unemployed lost rights), a worker who lost his job at age 47 could link benefits and aid to reach the legal age of retirement, 65 years.

On the table of the meeting, Government, businessmen and union representatives worked on five points, as LA RAZON has known. The meeting was a more technical one, which allowed progress in some aspects, but had no decision-making character. What the Government, businessmen and trade unions agreed to do was to resume the termination of the contract at the age of 65, which was repealed in the 2012 reform. The other issue that has remained pending is that of subcontracting. Entrepreneurs see this form as a way of subsistence for SMEs.


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