In its latest report on the Spanish economy, the Organization for Economic Cooperation and Development (OECD) analyzes the role of unemployment benefits and warns of possible undesirable effects on certain groups, especially among older workers.
The study suggests that some subsidies, far from facilitating the return to employment, could be generating dynamics that discourage the return to work. In this context, the subsidy for people over 52 years of age occupies a central place in the debate.
A subsidy with unique characteristics
The OECD stresses that the assistance for the unemployed over 52 years of age has features that clearly differentiate it from other existing benefits in Spain. Unlike conventional subsidies, this one does not have a defined maximum duration and can be maintained until the beneficiary reaches the legal retirement age.
In addition, access to the benefit is assessed on an individual basis, without taking into account the income of the household as a whole, and with a Social Security contribution higher than the minimum base. This last point allows recipients to improve their future pension, even while they remain outside the labor market.
According to the agency, this design makes the subsidy an economically attractive alternative to low- or medium-paying jobs, especially in the final stretch of working life.
The growing weight of the senior unemployed
Another of the data highlighted in the report is the evolution of the profile of those receiving unemployment benefits. Currently, more than seven out of every ten recipients are 50 years of age or older, a proportion that has increased significantly in the last decade.
For the OECD, this trend reflects the fact that welfare benefits have been consolidated as a stable outlet for many older unemployed, rather than acting as a temporary bridge to new employment. This structural change, the organization warns, has direct implications for labor participation and the balance of the system.
Why it can slow down the return to work
The analysis points to a key element: the income comparison. In certain cases, the combination of subsidy and contribution may be more advantageous than accepting a job with an adjusted salary, which reduces the attractiveness of returning to the labor market.
This situation, according to the OECD, may result in a smaller supply of available workers, limit labor mobility of experienced people and generate additional strains on the pension system in the long term.
The report does not question the need for social protection, but it does suggest that the current balance between assistance and employment may be misaligned with labor activation objectives.
Reforms proposed by the OECD
In view of this scenario, the international organization suggests reviewing the design of the subsidy for the over-52s. Among the lines of action it proposes are limiting the accumulation of contributions during the assistance phase, introducing income controls at the family level and limiting the duration of the benefit.
It also recommends strengthening the active job search requirements, so that the benefit functions as a temporary support and not as a prolonged alternative to paid work.
The aim, says the OECD, is to ensure a more age-consistent system and to strengthen incentives to take up employment when there is a real opportunity.
A debate with economic and social impact
Beyond the numbers, the discussion on the subsidy for the over-52s is part of a larger challenge: the aging of the population and the need to sustain economic activity with a shrinking labor force.
The OECD believes that facilitating the retention and return of older workers to the labor market is key to improving productivity and reducing dependence on welfare benefits. To this end, it insists that public policies must balance social protection and effective employment incentives.
The report thus opens a fundamental debate on how to adapt the support system to an increasingly demanding demographic and employment context, in which the experience and talent of older workers can play a decisive role when it comes to entering the market or remaining on the sidelines.
