Employment Outlook: Spain
2012-01-09
by Mary Anne Thompson
One of the most hard-hit countries in the current global slowdown, Spain is struggling against sliding back into recession, while attempting to reduce its government budget deficit and fight high unemployment.
By Mary Anne Thompson, founder and president, Going Global Inc.
After stalling in the third quarter of 2011, the Spanish economy is in danger of slipping back into recession as it attempts to reduce its government budget deficit in the midst of the EU sovereign debt crisis, while simultaneously trying to generate economic growth.
Efforts to boost the economy through stimulus spending, tax breaks and loan guarantees have not reduced the unemployment rate, which stands at 22.80 percent, as of late October 2011 according to Eurostat. This is Spain’s highest unemployment rate in 14 years and the highest rate in Europe.
Unemployment in Spain is highest among women, young people and immigrants. Immigrants have been the most adversely affected, and many are even going home with plane tickets funded by the Spanish government, as the government finds it cheaper to send immigrants back than to continue paying benefit claims. Young people are also struggling, with the youth unemployment hitting 46.2 percent in late November according to The Economist.
In a bid to boost the labor market, the government is offering employers tax breaks for hiring young people and long-term unemployed. The government has also instituted a number of reforms, including enacting an average 5 percent cut in public sector salaries, freezing public salaries and pensions, and filling only one out of ten vacant public jobs. These reforms have been met with some hostility, as attested by numerous public demonstrations attended by tens of thousands. The government optimistically predicts the unemployment rate will decline to 16 percent by 2014.
However, the Organisation for Economic Cooperation and Development's (OECD) latest Economic Survey of Spain predicts the effects of the financial crisis will be long lasting in Spain, intensified by increased private sector debt and declining investor confidence. The OECD expects unemployment rates to remain high for some time to come.
The Spanish government is confident, though, that this is the worst of the crisis, and the country will begin to see light at the end of the tunnel next year. There is much back and forth, and it is safe to say this situation is evolving. Jobseekers are urged to monitor the country's economic situation. Certain job sectors will experience positive job creation long before others, and those looking to acquire work in Spain should continue to follow the country’s process as it fights to move out of this recession.
Hiring Intentions in Spain
According to Raúl Grijalba, Manpower Spain's country manager, “Employers continue to take a wait-and-see approach to hiring. They are waiting for more positive signals in the business environment and until then will only be hiring for mission-critical positions.” Employers in the northwest of Spain have the most optimistic hiring intentions, while those in the northeast have the weakest hiring plans. Of the ten sectors surveyed, only employers in the restaurant and hotel sector showed any intention to hire. Other industries that showed improvement were the wholesale/retail and agriculture/forestry industries. The weakest hiring intentions were reported in the mining sector. Encouragingly, more than 70 percent of Spanish employers surveyed expect to see profits rise in the next year.
The Economist Intelligence Unit, in partnership with executive recruiter Heidrick and Struggles, recently released the Global Talent Index, which analyzes a country's capacity for developing and retaining top talent. Spain ranks 21 out of 60 countries this year. Looking ahead to 2015, Spain is expected to see a decrease in employment, one of only six countries in the report to see a slip in rankings.
A recent report by human resources company Michael Page states Spanish wages are among the lowest in the EU, at 22,000 EUR annually, compared to an average 35,000 EUR among EU member states.
Areas of Job Promise
The Spanish foreign trade portal Invest in Spain gives compelling reasons why Spain’s economy will not only recover, but thrive. Primary factors include Spain’s central European position as an international business hub, strong ICT (information and communication technologies) infrastructure, a well-educated population with strong emphasis on advanced scientific and technological degrees, and an exceptional lifestyle. In addition, Spain retains its coveted position as the number two tourist location in the world (after neighboring France).
As the world's second most popular tourist destination, Spain boasts a large tourism sector. More than 2 million people are employed in Spain's tourism sector; this accounts for 11.3 percent of Spain's total active workforce.
An area of promise is transport and logistics. Spain is also among the countries with the most high-speed rail tracks, and has one of the most important high-capacity rail networks in Europe. The government is investing heavily in developing the transport infrastructure, which is also meant to create more jobs. Spain is also expanding its airports and seaport structures.
The agricultural-food industry is a growing sector, now valued at 45 billion EUR and expected to increase. It is currently the main industrial subsector, employing some 500,000 people and generating 17 percent of all industrial revenue.
Biotechnology is another emerging sector. The government expects the sector to account for 1.6 percent of GDP in 2012. Furthermore, there is a strong culture of spin offs in Spain, with public institutions annually creating between 10 and 12 new companies. In particular, among OECD countries, Spain is a leader in agro-biotech. Biotech is growing faster in Spain than in other countries, increasing 239 percent between 2000 and 2008. This sector also enjoys government support in the form of low-interest credits and incentives during the start-up phase.
Meanwhile, the pharmaceutical industry in Spain is fairly established, with about 440 companies operating in the country and accounting for 18.5 percent of private R&D spending. In 2011, the company Celgene opened its first research center outside of the US in Seville as part of the Celgene Institute of Transnational Research Europe, which intends to invest 60 million EUR in advanced therapies and regenerative medicine.
The Observatory for Sustainability in Spain estimates the green industries sector employs 500,000 workers and is worth approximately 11 billion EUR. There are some 2,000 SMEs operating in the sector in Spain. Potential areas of development include biogas, soil remediation, end of life vehicle waste and desalination (water scarcity is a serious problem facing Spain). Additionally, the Spanish government recently announced it will unblock 72 million EUR to assist with the purchase of electric vehicles, including trucks, buses and vans. With this the government also hopes to develop an industry and infrastructure for recharging these vehicles. Furthermore, the installation of solar panels in new construction is required in the cities of Barcelona, Seville and Madrid.
In the Information and Communications Technology sector, potential areas of growth include open source software, which enjoys strong public support and a growing market, e-health, e-commerce and mobile phone auxiliary services. Spain has one of Europe's highest mobile phone penetration rates. The Spanish government is actively encouraging multinational companies to establish more technology-intensive operations in multiple sectors.
Within Europe, Spanish employers are second only to Greek employers in pessimism. With such high unemployment and slow job creation, Spanish jobseekers and those wishing to move to Spain and work have reason for concern, too. The Spanish government stresses optimism, however, believing the worst of the economic recession is over. Not everyone agrees, but it is an ever-evolving situation that requires both careful monitoring and hope.
Tips for a successful job interview in Spain
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Spanish recruiters are impressed with applicants who have knowledge about the company’s chief executives, products and services, competitors and clients.
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One should also review the job requirements carefully to ensure that all the important issues can be addressed in the interview.
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For an interview, dress should be formal or classic. Men’s business attire consists of a conservative but well-fitted suit, including a jacket and tie. Women generally wear stylishly tailored dresses or suits. Black or brown shoes for men and heels for women are preferred.
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Spaniards tend to be very conversational, and there is always casual discussion before entering into business. Personal relationships are very important, both socially and in business, as this helps establish trust.
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For business matters (or any other matters), quality of character is more important than business experience, because a strong character is more trustworthy. Those who have a sense of humor and an ability to entertain will have much more success in Spanish business dealings than those who do not.
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After the interview, it is acceptable to follow up with a phone call or an email with the main interviewer.
Recommended Job Sites - Spain
Going Global
http://www.goinglobal.com
Going Global is the leading provider of both country-specific and USA city-specific career and employment information. The unlimited access subscription database features 33 Country Career guides, 43 USA City Career Guides, corporate profiles and more than 600,000 job listings within the USA and around the world. Both the Going Global Country Career Guides and the USA City Career Guides provide professional advice and insider tips on such topics as job search resources, employment trends, executive recruiters and staffing agencies, and professional and social networking connections.
Becas
http://www.becas.com (Spanish)
This website features numerous internship and scholarship program listings that are indexed by nearly a hundred different industry types. There is also an internship bulletin board, résumé/CV posting service and internship email service. This website’s homepage provides links to various job and university websites.
Grupo Status
http://www.status.es
Grupo Status is made up of three companies: Status (exclusively for direct executive search), EMA Partners Internacional (executive search and recruitment) and Desva Selección (recruiting personnel through press advertisements). This website lists job opportunities for executives and allows candidates to send résumés/CVs via email.
Mary Anne Thompson is the Founder and President of Going Global, Inc. (www.goinglobal.com) a subscription database service that contains career and employment information for more than 80 locations. More than one million users enjoy Going Global’s unique content, which is researched in-country by local career experts and updated annually. She is also an author, lecturer and frequent guest on various media outlets, including NBC and CNN International. Previously, Mary Anne served as an attorney and advisor to President Ronald Reagan in the White House.
http://www.goinglobal.com/
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