Women, like young people, are disproportionately affected by unemployment, which has been a constant problem for Spain ever since the 1970s. The rate peaked at 24 percent in 1994 and, despite falling steadily since then, is among the highest in the EU, at 11 percent. It should be noted, however, that a significant proportion of those officially recorded as jobless actually have employment of some sort in the so-called shadow economy. Both the considerable size of the shadow economy and the persistence and severity of unemployment are usually attributed to the inflexible nature of Spain’s labor market. This inflexibility, in turn, is due partly to the continuing existence of government regulations on hiring and dismissals, and partly to the reluctance of most Spaniards to move to another part of the country in search of jobs.

Compared to other European countries, Spain has relatively few workers who belong to labor unions—about 10 percent. Yet labor unions play a surprisingly prominent role in the country’s public life for reasons that are partly historical. The unions acquired considerable moral authority through their leading role in opposition to the Franco regime (1939-1975). Subsequent democratic governments have sought their cooperation by involving them in discussions and agreements on various aspects of economic policy (concertación social).