Why working no longer pays off in Spain: wages, rent and benefits

A €1,200 salary minus €900 rent leaves €300. Unemployment benefits pay €600. That's why many people choose not to work.

English · Original discussion in Spanish · Published

€1,200 salary, €900 rent: working doesn't pay off

A waiter working eight-hour shifts earns €1,200. An average apartment costs €900. That leaves €300. If, instead of working, they collect unemployment benefits –€600– plus other assistance, they don't have to get up early, don't have to put up with bosses, and the numbers still add up. The conclusion isn't an opinion: it's arithmetic. When the math says working is a bad deal, something is rotten in the labour market.

Behind this isn't a legion of lazy people, but a lethal combination: subsistence wages versus soaring rents, three-month contracts that build neither pension contributions nor savings, and a cushion of benefits which, combined with undeclared weekend work, turns not working into a rational short-term strategy. The Spanish family – that safety net that covers rent and food until age 50 – completes the picture. Some people, with two benefits guaranteed, even decide to quit their jobs: survivor's and orphan's pensions can outweigh a union-negotiated salary.

The result is a silent exodus: those who can, leave the country with their vocational degrees or university qualifications, fed up with chaining together precarious contracts without ever being able to stand on their own. Those who stay look at the horizon and see that working means not looking at the future. How much would wages have to rise for rowing to be worth it again? As long as the math keeps showing a €300 gap, the answer won't be pretty.

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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (34 replies).

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