Unemployment benefis reform ought to help balance the spending allocated for it in order to incentive people to search for work and guarantee benefits when a person loses their job. The Minister of Labor's project will consider reducing the lengthof time unemployment benefits will be awarded and stiffening the requirements to receive them, which improves geographic mobility and a stronger connection between compensation and education.
Further, avoiding fraud will be critical. This is not an easy change to make, and some sectors are going to reject it in order to reduce the unemployment benefits they will have to pay for. And some economic and administrative groups are presenting serious obstacles to the reform that the Labor Industry is preparing, which makes it even more critical to employ it.
For example, Spain's national government is paying down the loan, but the regional governments and employment offers. This creates a disfunctionality that stymies the effectiveness of employment services just as unemployed workers and, in addition, going after fraud instances. This shows that increased coordination and control are necessary.
On the other hand, Spain's government shouldn't overlook that despite the fact that they are already approved by law, the role that placement agencies will play has yet to be developed. The reform will try to promote labor mobility. In this respect, there are two barriers. First, the housing market situation (very long-term mortgages and scarce, expensive rental options) and, most of all, seasonal working contracts. The reform is critical, it's going in the right direction and it should be approved in order to introduce new innovations such as the active search agreement.
