Challenges persist in empowering the youth population in Spain for the foreseeable future
In a report published by the Spanish association Ayuda en Acción on April 11, 2022, titled "Employment and Youth in Spain: A Look at 2030", the organization highlighted the challenges faced by Spanish youth today. The report revealed that for 22% of young people, unemployment is the main problem in Spain, and the high price of housing is the primary barrier preventing them from moving out of their parents' homes.
The economic situation, including high unemployment rates, also plays a significant role. Rising unemployment reduces household income and increases economic insecurity, extending the period before young people can afford to live independently. This delay in emancipation is linked with broader socio-economic issues such as decreased birth rates, social exclusion, increased risk of eviction, and difficulty in maintaining basic utilities like water and electricity.
The situation is exacerbated by a passive public administration that has been ineffective in addressing housing access with measures like rental price caps or purchase assistance. However, the Spanish government has recently launched a €3.3 billion, three-year plan to provide "decent housing" to the population, including financial assistance for those settling in rural areas.
The report recommends the adoption of taxes on empty homes, improving the energy efficiency of buildings, more urban and rural rehabilitation projects, investments to facilitate transportation and territorial connectivity, and a larger stock of public housing as an alternative to the private real estate market.
Despite the increase in educational levels, employment no longer guarantees young Spaniards the ability to afford housing. The temporary employment rate for those aged 15-24 was 69% in 2021, up by 9.9 percentage points over the last decade. For those aged 25-34, the temporary employment rate was 39%, up by 3 percentage points over the same period.
Many job opportunities for young Spaniards remain precarious, with a much higher prevalence of part-time contracts compared to older age groups. This precarious employment contributes to the delay in emancipation, as young people struggle to secure stable income to cover housing costs.
The report predicts a further improvement in employment over the next decade, with the youth unemployment rate (aged 15 to 29) expected to drop to 20% by 2030. However, the cost of housing and economic precarity are likely to keep the emancipation rate low in the coming years.
The age of emancipation has increased in recent years in Spain and has become a source of concern. In 2021, the average age of emancipation was 29.8 years in Spain, compared to 26.5 years in the EU. Only 30% of emancipated young people are homeowners in 2021, down from half the rate in 2006.
The Basque government helps around 15,000 young people pay their rent through financial aid or subsidized housing. In the Balearic Islands, the rent rate for young people may even be higher, approaching 100%. Rents in Barcelona reached record highs in the third quarter of 2022, with Spaniards under 25 spending 84% of their salary on rent in 2020.
The panel of experts dispatched by Ayuda en Acción expects the proportion of Spaniards aged 25 to 34 living with their parents to continue to rise, albeit at a much slower pace than in the last decade, by 0.7 percentage points, reaching 47.5% by 2030. Ayuda en Acción hopes this figure can be reduced to 38%.
Overall, the economic situation of Spain remains the main concern of young people. The report notes that 47% of young people say they are concerned about the environment, attributing it the two highest values on a 10-point scale, compared to 17% for the adult population as a whole.
In conclusion, Spanish youth face a challenging interplay of housing unaffordability, precarious employment, and high unemployment rates, all of which contribute to delaying their emancipation and broader social consequences such as reduced family formation and increased dependence on their parents. The report's recommendations aim to address these challenges and improve the living conditions of young people in Spain.
- The report on employment and youth in Spain by Ayuda en Acción emphasizes that the high price of housing, a major factor in home-and-garden, is a significant barrier for young people, preventing them from moving out of their parents' homes.
- In the realm of personal-finance, the report reveals that the economic situation, influenced by high unemployment rates, reduces household income and increases economic insecurity, thus delaying the emancipation of young people.
- The report suggests strategies to improve housing conditions, such as implementing taxes on empty homes, improving the energy efficiency of buildings, and investing in public housing to facilitate competition with the private real estate market.
- According to the report, politics plays a role in the challenging situation faced by Spanish youth, as a passive public administration has been ineffective in addressing housing access issues like rental price caps or purchase assistance.
