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Discussion

Describe about the Global Economic Geography for Spatial Organization.

The study of the location, spatial organization and allocation of economics activities across the world is termed as global economic geography. It mostly represents a conventional subfield of the discipline of natural features. On the other hand, various economists have approached the field in ways more distinctive of the regulation of economics. A variety of approaches has been adopted by global economic geography that mostly includes the location of industries as well as economics of linkages. Economists such as Paul Krugman as well as Jeffry Sachs have examined various traits related to global economic geography.

As per the reports, between the year 1995 and 2007, the percentage of overseas residents increased to 12 percent from 2 percent in Spain. As a result, Spain went from being a sender to a recipient county. Spain received enormous migration inflows in the years prior to the Great Recession with an average of 1.4 percent of its total domestic populace. The migration inflows sustained during the first stage of the crisis at a rate of around 1.2 percent of the overall domestic population per year. As compared to this, the migration outflows were insignificant that increased to only 0.4 percent of the overall domestic population. The political response in terms of the labor market has been inadequate as well as unsuccessful. However, the major focus of the Spanish government was to stabilize the macroeconomic framework.

The composition of the Spanish population mainly altered due to the significant changes of the immigration flows of the expansionary period. Most of the overseas population in Spain is mostly from other EU countries that includes Latin America and North Africa. The foreign population in Spain is younger as compared to the national population. The consequences of the Great Recession on the Spanish labor market have also been extraordinary. As per the reports, the rate of unemployment is much higher among the youth and the immigrant population. Given the elevated share of recent immigrants as well as the high rate of unemployment, it appears that Spain is in transition from enormous immigration to mass departure. [1]

The case of Spanish migration mobility is exclusive mostly due to its magnitude and timing. Spain experienced one of the largest waves of migration in the history of Europe as compared to its population. During the year 2014, Spain received an increased migration inflow of 7.3 million as well as a net flow of 4.1 million. As a result, Spain was recorded as the second-largest recipient of immigrants in unconditional terms among OECD countries, the United States being the first largest. However, after the financial crisis, large number of outsiders leaving Spain increased rapidly. As a result, inflows became weaker, resulting in much lesser net flows. [2]

Challenges Faced by the Labor Markets in Spain

Spain became a destination country for the immigrants that increased the migration inflows progressively. In the year 2015, the number of overseas residents increased sharply in Spain. The first attempt of Spain at immigration legislation was under the Socialist party government. However, migration outflows started to increase as the growth of GDP in Spain started to slow down. Since the year 2010, the total outflow in Spain was more than 400 thousand annually, both in relative as well as absolute terms. The high rate of migration outflow was due to the high mobility of the overseas nationals. As per the reports, during the year 2012 more than 50 per thousand of foreigners dwelling in Spain left the country. [3]

Internal migration mobility is less costly as compared to international migration. The degree of inter-regional mobility in Spain was moderately low despite significant divergences in the rates of unemployment as well as wages. There are large flows of workers in Spain, moving from employment to unemployment that are not caused due to financial downturn. As per the reports, in the year 2015 there are more than 6.1 million individuals in Spain who are foreign-born. Out of these population, more than 4.5 million people did not opt for the citizenship in Spain. The population in Spain jumped to 47 million in the year 2010 due to the pronounced demographic shifts that were experienced in Europe. Due to migration mobility, the number of outsiders living in Spain augmented eightfold in just over a decade. There was absence of intolerant backlash both at the political level as well as at everyday life. [4]

The migrants brought with food and music as well as their festivals. This in turn, added small amount of colors to Spain that had stayed unexpected homogenous for much of its current history. As a result, due to migration mobility the economy got transformed that in turn provided much of the labor and a fair bit of the demand that stimulated a decade long. The labor market in Spain is not able to cope with huge increase in various workers becoming unemployed. The economic recovery in Spain was backed by the sternness policies of the government. Despite a positive macroeconomic outlook, the labor market continues to represent the major structural problems in Spain. This in turn acts as a barrier that hinders inclusive as well as consistent socioeconomic development. The competitiveness of the economy in Spain deteriorated that in turn led to further decline of growth. This in turn led to increase in the rate of unemployment as well as the reaction of the Spanish government with a range of structural reforms. The structural reform on the one hand gave importance to agreements related to collective bargaining at the firm level over those ascertained at the sector. This in turn made it easier for the firms to take a back seat from a collective bargaining. On the other hand, the provision of the Employment Protection Legislation of Spain was significantly modified.[5]

The labor market in Spain however lacks the absorption capacity that is required to translate GDP growth improvement into substantial improvement. The labor reform of the year 2012 introduced suppleness to a traditionally inflexible job market. Most of the young individuals are affected by complexities in accessing the labor market as compared to the total population groups. Spain has also become one of the key migration destination among the member states in the European Union. Migration mobility also had an imperative impact on the framework of the labor market in Spain as well as its economy. The migrant employees mostly occupied the jobs that were generated in Spain. As per the reports, the migrant population thus leading to the development of the economy generates 50 percent of the GDP in Spain. The major role that is played by the migrant population in Spain leads to substantial sectorial concentration. [6]

The composition of the foreign populace in Spain has altered considerably. The largest immigration was mainly due to onward mobility that indicates the fact that leaving the country of destination in order to shift to a third country. Intra-mobility in Spain is regulated by migration in the EU. Directives, providing rights of entry as well as reside within the EU to certain categories of migrants. Such migrants mostly include long-term residents as well as highly qualified employees. With the increasing importance of the EU acquis, the policy procedures strengthen intra-EU mobility for specific groups. The migration mobility is also considered as a probable solution to imbalances in the rate of employment. [7]

Most of the works pose as a challenge to the prototype of migration as an enduring as well as one-off movement that mostly focuses on return migration. The restricted research on onward migration has mostly concentrated on the influence of human capital as well as occupational status in this mobility. However, it is argued that onward migration acts as an unsuccessful solution to the problems related to socio-economic integration. Migration in Spain is not considered unconnectedly from economic as well as legal incorporation procedures. It has been argued by the migration theory that links to migrants overseas encourage individuals to shift by lessening the risks as well as costs. This in turn helps to increase the advantages related to migration. [8]

Senegalese migration to Spain has its origin in the imposing relationship with France. During the colonial period some employees were employed temporarily in the administration of France with the help of blue-collar position. The information related to migration mobility is gathered with the help of MAFE survey that helps to provide longitudinal information on the migration network of the respondents. The studies highlights the instability of migration careers, both in terms of weakening circumstances in the European labor markets and of associated hardening of legal status of the migrants. It is imperative to mention the quest for a better life as the motive for activating secondary migration within Spain. [9]

The three major challenges that are faced by the labor markets in Spain includes the reduction of youth unemployment, re-balancing the duality of the job market by enhancing the job security as well as resolving long-term unemployment. The major structural problem for the labor market is the youth unemployment rate. This in turn affected more than one million youth, who belonged to the age group of 16 and 24 years. The youth was mainly referred to as the lost generation. The major reason that led to youth unemployment was the outdated education system that led to high rate of academic failure in the schools. The education system in Spain is mostly polarized between a cadre of exceedingly trained youth as well as young individuals with negligible work experience. As per reports, only 32 percent of the individuals in Spain holds a degree from vocational training. There is also a requirement to enhance the dual training by underling the connection between the educational systems as well as trades. [10]

There is also a need to re-balance duality in the job market with the help of strong segmentation. The structural and the cyclical problems related to the Spanish labor market are mostly highlighted with the help of strong segmentation. Job securities are mostly enjoyed by long-term contracted workers however; short-term contracted workers enjoy restricted social security as well as high seasonability. In the year 2014, the rate of temporary unemployment increased by 24.6 percent despite the labor reform that took place. This mostly comprised of the economic recovery together with the generation of jobs with long-term contracts. The duality of the labor market discloses a social divide that aggravates inequality as well as it puts at danger those who are working however; in a poverty situation. [11]

Long-term unemployment is also considered as the structural problem that requires to be eradicated. Radically exaggerated by the severity and duration of the crisis, the percentage of the working population that is receiving long-term unemployment benefits is practically unaffected. Due to outdated training that is provided to the young individuals, the job opportunities also gets lessened as well as diminished. The labor market also has restricted capacity that provides fewer opportunities to those who are not able to get good training. The perseverance of long-term unemployment has a direct impact on both poverty as well as social elimination. Poverty mostly takes place when the rate of unemployment increases. The increase in long-term unemployment financial support objectives to alleviate the risk of poverty as well as entails the cost of opportunity. The high financial cost of the unemployment subsidy restricts the creation of active jobs. As a result, it generates tension between risks of policies related to poverty prevention as well as those favoring active search of employment. [12]

The geographies of work had a dual objective that mostly intends to make the economy of Spain more competitive. This is mostly possible by increasing suppleness of the labor market that helps to generate jobs. However, increasing suppleness was escorted by diminish in job security as well as lower salaries. The cost of firing employees gets reduced with the help of labor law reform. This in turn prioritizes company treaties in advance of collective bargaining treaties. Austerity policy as well as other structural reforms in the labor market had a negative influence on social justice.  However, Spain has been able to reduce the rate of unemployment among the most vulnerable groups with the help of policies that geared to the entry of the groups as well as stabilization in the labor market. There are few structural reforms that require to be adopted by the Spanish economy. Spain also requires to link and mediate objectives that in turn attracts foreign direct investment as well as promotes overseas trade to high-value added sectors. These sectors are permeable in displacing damaged jobs toward export-oriented industrial sectors as well as services. [13]

Spain has been able to achieve major advances through a global impartiality policy as well as significant structural reforms. Spain had also assumed that structural reforms mostly concentrate making labor markets more self-motivated. Spain advanced a lot during the year 2013, however; the advancement was without the productivity growth. The migration mobility led to increase in the number of individuals coming into the country. However, the outflows of migrants are likely to have a negative impact on the economy. The major areas such as the housing market as well as the retail sales are also bounded to get affected due to migration outflows. [14]

It has also been found that majority of individuals who are presently turning their back on Spain are mostly the migrants recurring to their home countries. It has also been found that most of the individuals dwelling in Spain are also departing from their countries in order to search for jobs in other stronger economies in Europe such as Britain, Switzerland as well as Germany. With their departure, torment amid warnings had sparked due to the fact that Spain is losing some of its brightest talent to overseas land. However, many economists views migration outflow as a relief as it helps to open a safety regulator. This is mostly because, the individuals who are leaving from the Spanish labor market are mostly those who are not able to find jobs. As a result, their departures are lifting the burden from the labor market in Spain. [15]

Leaving Spain is likely to lead to bitter recognition, as their struggle to build a new life is likely to end in the future. The attempt of the middle class to secure a divergence between the domestic as well as public sphere clashed with the experiences of everyday life of labors. According to the hypothesis made by Krugman, it has been found that the higher is the degree og labor turnover, the lesser is the rate of unemployment across the countries. The rate of degree of cyclicality of appointing as well as firing rates differs largely in Spain. Interpreting Krugman hypothesis to a regional level, it has been found that high rates of unemployment are mostly active in those areas, where the degree of job searching is lower. On the other hand, areas of regional unemployment are mostly those areas where the procedure of job creation is boosting. [16]

The political and the social prevalence of the Spanish capitalist class reinforced preceding religious as well as philosophical viewpoint that linked women with domesticity. The divisions between male and female spheres were strengthened with the help of the legal system. Geographies of labor market are mostly concerned with various geographies that include unemployment, incomes as well as employment. Over the past years, the geography of work has accomplished growing attention from both policy makers as well as academic analysts. The research into labor as well as labor markets has been increasing apace, in the economic geography. Most of the economists have also discovered geography in their theorization as well as investigation of the labor market. However, in the past the economists did not assign much importance to the geography of the labor market. [17]

In Spain, the major focus is on the local and the regional labor markets however; it is not considered as a purely academic one. The geographies of labor have served to problematise the way by which individuals views the local labor market. It is argued that geography acts to balkanize the labor market, imparting strong as well as variable local barriers. As a result, the national labor market can be viewed as a spatial assortment of overlapping domestic markets. The domestic labor markets, on the demand side mostly trace out labor catchments. On the other hand, the domestic labor markets embrace the service fields as well as job search places of workers on the supply side. The more the labor supply get rid of of employers as well as the employment field of workers overlap as well as involve the similar set of individuals, the more self-sufficient domestic labor markets will be. Domestic labor markets are much more fluid as well as disperse than it is contingent from travel-to-work areas. [18]

There has been crisis of capitalism in Spain that led to massive debts that is accumulated in the banking system. The massive debts were also due to housing bubble that fuelled the previous development cycle. It is also mainly due to budget deficit that was accumulated due to financial crisis as well initial post security of the banks. During the boom period, Spain went through uninterrupted economic growth. The size distribution of the Spanish region is a critical factor. Spain is mostly viewed as a comparatively larger region that is not uniform in terms of economic performance. [19]

In Spain, the research on creative industries is subjective. The leading approach is termed as the economics of culture. However, the policies for creative industries do not survive as such at the country level. Spain provides an ideal location for examining the relationship between corporatists planning as well as globalization. The arguments related to the termination of the national sovereignty in the global economy are overspent. The materialization and the consolidation of social bargaining were not prevented by the increase in foreign direct investment as well as exposure to trade and capital mobility. There were strong political incentives that were faced by the governments in Spain to mitigate. [20]

The case related to the geographies of work in Spain confirms that the connection between changes in the global economic environment as well as the procedure related to domestic policy making relies on political as well as economic factors. Social deals emerged in Spain in a context that is marked by the self-governing transition as well as the financial crisis. The social actors in Spain were convinced by the intensity of the crisis. The process is mostly referred to as social concertation. The major objective of these agreement was to restrain wage demands in order to control inflation as well as foster the mending of trade profits. [21] The cooperation with transit countries such as Senegal, Morocco as Mauritina is the secret of the success of Spain.

Conclusion

It has been concluded that the major reason that led to youth unemployment was the outdated education system that led to high rate of academic failure in the schools. There are large flows of workers in Spain, moving from employment to unemployment that are not caused due to financial downturn. It has also been concluded that the costs of firing employees gets reduced with the help of labor law reform. It has been found that due to migration mobility, the number of outsiders living in Spain augmented eightfold in just over a decade. The increase in long-term unemployment financial support objectives to alleviate the risk of poverty as well as entails the cost of opportunity. Spain does not have the similar monopolistic as well as encompassing union that exists in other countries including Germany, Austria as well as Sweden. Spain is often referred to as the country with an in-between system of wage bargaining. It is found that most of the individuals dwelling in Spain are also departing from their countries in order to search for jobs in other stronger economies in Europe such as Britain and Switzerland.

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