Spain's Saiz claims one million unpaid interns now pay social security

Spain's Saiz claims one million unpaid interns now pay social security

Elma Saiz, Spain’s Minister for Inclusion, Social Security and Migration, announced this as a milestone: "We have already incorporated one million young students in unpaid internships into the Social Security system." The message, spread on social media, boasts that these students are "registered," accumulate rights for benefits, and enjoy greater protection. The fine print is different: they are training placements where the student earns no money, yet they inflate affiliation statistics.

The announcement was met with skepticism by those who view the measure as accounting window dressing. A key question in economic analysis remains unanswered: if an unpaid intern contributes to social security, do they count as employed? Do they leave the unemployment lists? The official response has not been as clear as the headline.

What does contributing without receiving a salary imply?

The mechanism is simple to describe but hard to swallow. The student undertakes unpaid training internships. The company pays no wages. Social Security registers them as contributors. According to the announcement, this contribution is covered by the company or, in most cases, by the educational administration. The result: one million people appear in the system without having received a salary.

Some argue the measure corrects a historical anomaly: interns worked without rights. Now, at least, they accumulate seniority for retirement. Opponents counter that without remuneration, there is no employment relationship, and calling it employment stretches language. The minister calls it protection; others call it statistics.

The effect on youth unemployment figures

The disturbing data point is youth unemployment. Spain appears with 25.3% in the international comparison released alongside the announcement, behind only South Africa (60.2%) and far above France (20.4%), Italy (19.4%), or Germany (6.4%). With these figures on the table, incorporating one million internship students into Social Security has an obvious side effect: they drop out of the unemployment count.

The suspicion that the measure aims to camouflage youth unemployment is not an isolated hypothesis. If an unpaid intern becomes a registered contributor, they stop swelling the unemployed list. The calculation is simple: one million fewer people in the numerator. The statistical miracle discussed in economic circles requires no one to find work; it just changes the label.

The dual vocational training trap

The background is more uncomfortable. Dual vocational training, a model combining study and work, has become a way for companies to fill positions with students who earn nothing. The company saves on wages; the administration pays the contributions. The student puts in the hours. It is the worst of communism and the worst of capitalism in a single system, summarized one analysis of the debate.

Testimonials from those who have experienced this do not help sell the measure. A recent case: of a class of 28 students in internships, only 6 secured a contract upon completion. The rest joined the ranks of those who no longer count. The internship is not conceived as a bridge to employment, but as a permanent rotation of young people doing real work without seeing a cent.

Who pays the contribution and what rights does it generate?

The overarching question is who bears the cost. If the company pays, many will refuse interns. If the educational administration pays, the expense falls on the taxpayer. In most cases, according to the analysis, the administration covers a contribution of around 50 euros per quarter. A negligible cost for the State, but sufficient to register one million people.

The rights accumulated by these students are real: they count towards retirement and future benefits. What is less clear is whether this compensates for a model where one works without being paid. Social Security has even enabled the recovery of up to five years of contributions for former interns who did not contribute at the time. The measure has administrative logic, but also smells like a patch.

Where the analysis gets stuck

With one million people added to the system without a payroll, affiliation figures improve and youth unemployment eases. What does not change is the reality of the labor market: young people still cannot find paid jobs, and companies still do not want to pay for their training. The minister celebrates this as an achievement. The unanswered question is how many of these unpaid contributors will get a contract when their internships end. No one has provided that figure.