Labor intermediation: SPE or ETT?

Temporary Work Businesses get more contracts, but utilities offer more training.

Unemployment has reached in the third quarter, to just over 4.5 million Spanish individuals, 10% more than in 2009. The labor market intermediation is a key factor in combating it. In Spain there are five types of intermediaries: the Public Employment Service (PES), the Temporary Employment Agency (ETT) placement agencies nonprofit, different job boards and recruitment consultants’ human resources. In fact, the ETT and the Public Employment Services make up the most prominent link between employers and unemployed workers, grouped many of the new job and carry out an active policy for promoting labor contracts and the direct management supply and demand according to market needs. However, even since the last labor reform as another offer so few deals in the same industries, each of which offer opportunities for use and have mixed results in the level of placement. While Temporary Employment Agencies get more contracts, utilities offer more training.

Following the publication of studies on labor market developments during the first half of 2010, there are no doubts about the effectiveness of ETT and SPE, the first place unemployed 5.3 times more state services. The Public Employment Service, which manages both the needs of supply and demand, obtained 2.4% of total loans. In absolute numbers means that 164,901 people out of work got a job on a total of 6,743,691 during the first half of the year. Private employment agencies handled during the same period a total of 867,615 loans: 12.9%.

This ratio, calculated at the national level, depends on whether you put the magnifying glass on the different regions. In the case of Extremadura, the fourth highest rate of unemployment, "the mediation of the Public Employment Service is at its peak performance. By contrast, where management does is lower in Catalonia, with an unemployment rate of 2.4% less than the national average.

In Spain, by law, the Temporary Work can only offer temporary contracts

To an extreme situation of unemployment, the goal is to get a contract, either temporarily or indefinitely. However, if you have time to wait until a job for an indefinite period, the SPE is the only one who can give an adequate response. This is because in Spain, by law, the only TTE may offer temporary contracts, unlike what happens with these companies in other parts of Europe.

However, it is noted that the number of employees who get a job through a temp agency, 30% just by signing a permanent contract. In this way, get a permanent seat in an enterprise is also possible with the mediation of one of these agencies.

With the latest labor reform were no longer closed the two branches of activity in which these firms could not influence: construction and public sector. However, although both are no longer exclusive to the SPE, are the branches where government services are more successful. According to the detailed data of last July, were the employers of public sector administration, defense and Social Security who offered more jobs through employment offices, with 24 055 offers a total of 60 141 (40%). In second place was construction, with 18,000 positions offered, 30% of the total.