According to many (inter) national economic experts, Spain must urgently implement drastic changes to the labour market. At present, current legislation and labour contracts are too rigid to be competitive with countries with much more flexible rules. In addition, something has to be done quickly in order to decrease the extremely high unemployment rate.

For these reasons, Spanish government recently implemented reforms in the labour market. In general terms, these reforms aim to modify the dismissal procedures and to encourage the contracting of new employees through subsidies and bonuses. Nevertheless, according to the experts, these reforms are much too limited, so there is a significant chance that in the short term further changes will arise.

If desired, Ibersupport is able to provide a detailed explanation of the reforms.