Spain recovers but young people are still in crisis

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The Spanish economic recovery continues its course. However, for young Spaniards it is increasingly difficult to become independent. The average rental price in Spain continues to rise and salaries are increasingly precarious.

Spanish families have not yet managed to achieve the income levels of before the crisis. According to statistical data from the National Institute of Statistics (INE), in 2016 Spanish families had an average of 18,137 euros per consumption unit (including rent), which is 2.9% more than in 2015 but 1 % less than the records of 2008, at the beginning of the crisis.

The case is even worse when it comes to the young population in Spain.

The training and predisposition of the young population in Spain is currently much higher than in the past, in the 80s or 90s, however, job offers –since the crisis broke out– are increasingly precarious and the situation for the young employee it is increasingly unsustainable. This is also directly affecting the birth rates and emancipation of young Spaniards, since with the average monthly income, the possibility of starting a family or becoming independent is increasingly a discarded and unfeasible option.

Independence in Spain is increasingly difficult

According to a recent study by the INE, the rent of housing for a young Spaniard represents 67% of their monthly income, a quite high figure since we are talking about ¾ parts of the average monthly income of young people in Spain, only disappear with the payment of the rent of a house.

There were even economists who were betting on the acquisition of a property rather than renting, since with the incentives and the low rates that the ECB presents, it is more profitable and comfortable - for the young citizen - to pay a mortgage than a rent.

If we look at the evolution of the rental price of a home in Spain, we can see how it is plunged into a continuous upward trend.

In October 2016, the average rental price was € 848, as of March 2017, in just 5 months, the price is € 877, which reflects a 3.4% increase in just one year .

That is why 80% of young Spaniards under 30 years of age still live at home with their parents and of the 20% of those who become independent, 84% have to share expenses, since they cannot cope with the payment of a rent in full.

Income and unemployment in the young Spanish population

In the young Spanish population, work is no longer a guarantee for the acquisition of a home or emancipation through rent.

According to a report by the Youth Council in Spain, 36.4% of young people between 16 and 29 years old are below the poverty line, a rate that reaches 56.8% of those who are unemployed but also 25.1% of those who are working. «There is labor poverty. Work is no longer a guarantee of survival in the transition to adult life ”, explained Víctor Reloba, head of the socioeconomic area of ​​the CJE during the presentation of the data.

In Spanish citizens between 30 and 34 years of age, the poverty rate stands at 30.1%, becoming 62.5% among those who are unemployed and 27.7% among those who are employed. However, 64.1% of the population under 30 years of age does not receive any salary and in 18.1% of the households in which they live, there is no person with a job.

Among young employees we cannot forget the precariousness of employment. 27.6% of those employed under the age of 30 have working hours of less than 35 hours a week, a part-time job that affects even more when it comes to women, with 24.3% underemployed. In addition, 93.3% of the contracts made to persons under 29 years of age in the first half of last year were temporary work contracts or training contracts for scholarships.

The young Spaniard has it increasingly difficult and we must not forget that every adult was young before.

Tags:  economic-dictionary accounting Commerce 

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