Spain versus Germany, the secret of the labour market

Abstract

This research focuses on European labour markets, specifically Germany and Spain. Spain currently has one of the highest unemployment rates in Europe, while Germany has the lowest, so we are interested in a descriptive analysis of each of these two markets. The data obtained, both quantitative and qualitative, on the factors and possible causes of this divergence, are obtained for a time period between 2002 and 2022. This period includes the Great Recession crisis, the Covid-19 crisis and the recent war between Russia and Ukraine. Finally, the conclusion shows possible solutions, based on the literature, to remedy the Spanish unemployment rate and try to bring it as close as possible to the German rate.