CEIM Urges Reform in Madrid's Labor Policies Amid Persistent Employment Challenges

The Confederación Empresarial de Madrid-CEOE (CEIM) has called for a significant shift in labor market policies after reviewing December's employment data. Despite a slight drop in unemployment—falling by less than 6%—and a modest 2% increase in Social Security affiliation, CEIM stresses that Spain's structural employment problems persist, largely due to the prevalence of temporary contracts that reduce job stability.

CEIM highlights that nearly 1.5 million workers still seek employment and notes that while sectors like Services and Agriculture saw job losses, Madrid remains a key driver of job creation with 18,077 of the country’s 19,181 new Social Security affiliates in December located there. The organization attributes this success to stable public budgets and a favorable business climate. However, the current regulatory environment concerns CEIM, particularly new policies that raise business costs through increased Social Security contributions and mandates such as electronic work registers, which could escalate administrative burdens and data privacy risks.

Moreover, CEIM points to rising minimum income subsidies, which have outpaced inflation, highlighting the urgent need to tackle structural unemployment rather than relying on short-term fixes. They advocate for policies that promote competitiveness and sustainable growth, emphasizing the importance of training initiatives and social dialogue to correct labor market mismatches and convert temporary improvements into long-term employment.

In their words, "We cannot resign ourselves to leading the unemployment rate in the European Union." As Madrid holds a prominent role in Spain’s employment landscape, CEIM urges policymakers to create an environment conducive to investment and job creation to secure economic progress.