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New labour laws could create up to 2.3 million new Spanish jobs
The Spanish government has stated how new labour reforms may be able to create up to 2.37 million permanent jobs by the end of 2011. In the financial report it has been estimated that 895,723 permanent contracts could be signed by the close of 2010, with a further 1,474,497 the following year.
Certain elements aare expected to cost the government almost 700 million euros by the end of 2012. This mainly comprises of the Wage Guarantee Fund of eight days compensation, if and when the permanent contract is dismissed. The estimated cost for this is expected to be 123.6 million euro.
The report goes on to state how 212.88 million euros would be the cost for subsidies to hire jobless people aged over 45 and 53.58 million euros is estimated to be the cost for converting training, replacement or substitution of permanent contracts over a period of three years.
A additional 80.54 million euro is estimated to be spent on exemption from contributions to social security in training contracts.
Some observers disagree with the financial content of the report, with a number of economists, businessmen, unionists and lawyers who believe that the reform will not assist in creating short term employment.
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