Spain: Government approves Youth Guarantee system

The government has moved to ease concerns over unemployment among people under 25 years-old by approving a Youth Guarantee scheme. The Cabinet of Ministers approved the new system, together with a series of new employment incentives, via Royal-Decree-Act 8/2014 in July 2014.

The aim of the Youth Guarantee system is that young people between 16 and 25 years of age, who are neither working nor studying, will be able to access a job offer, training programme or an internship.

It is estimated there are around 845,500 youngsters in Spain classed as NEETs (not in education, employment, or training). It is hoped young people will be able find a job, training or internship under the system within a maximum of four months.

All young people registered are included in a single list for the whole of the country that can be accessed by the Central and Autonomic Administrations. Young people will only have to fill in an online form to register; it is not necessary to provide extra information or documents, as the public administrations will amend  each candidate’s data.

The success of the Youth Guarantee system will rely on a series of incentives to attract employers to hire young workers. One of the most interesting is a €300 payment for employers who hire youngsters via open-ended contracts. This incentive consists of a bonus of €300 per month for six months and will be available until 30 June 2016.

The European Union is supporting this plan to the level of €6,000 million. In Spain, the budget is €1,800 million, to be distributed between 2014 and 2015.

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