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Exceptional employment programme for the transition towards the stable hiring, included in the Royal Decree-law 1/2011, of February 11th, of urgent measures to promote the transition to stable employment and the professional requalification of unemployed people).

Country of implementation
General short description of the innovation
The presented measure is an exceptional employment programme with the aim to increase the opportunities of finding a job by youth and long term unemployed people through an important reduction of the Social Security taxes of the companies hiring these groups. /
Target group
Policy Field
  • employment
  • general fiscal
Type of Policy
  • public
Duration of the policy
Starting in February 2011 and one year of validity.
Scope of innovation
  • Scope: Temporary
  • Budgets: Unspecified (200 000 000 ? to fund the State Employment Service
  • Number of intended beneficiaries: Unspecified
  • Spatial coverage: National
General description of (intended) objectives and strategies
The main objective is to encourage the hiring through the partial time contracts of young unemployed people and long term unemployed by the Social Security contributions reduction to the companies. /
Nature of the innovation-short-term perspective
To achieve the hiring of youth and long term unemployed with a contract duration of, at least, 6 months. /
Nature of the innovation-long-term perspective
To insert the target group in the labour market by the stabilization of the temporary contracts achieved. /
Type of ideal-typical strategy for the innovation
  • liberalisation
Type of innovation
  • new policy, practice or measure
New outputs
  • regulations of the labour market (Contracting of youth and long term unemployed)
  • subsidies/tax-credits (Reduction of 100% of the Social Security taxes from the company the next 12 months after the hiring. If the company has more than 250 employees, the reduction will be 75%.)
  • working time (working time must be from 50% to 75% of the full-time basis)
Clarification of intended mechanisms, outputs and outcomes (optional)
The reduction in the Social Security taxes will be 100% if the size of the company staff is lower than 250 workers and 75% if it is over 250. / To have these benefits, the working time of the new contracted people must be from 50% to 75% of the full-time basis. / The contract duration must be at least for 6 months. / If the contracts are temporary ones, its transformation in indefinite could lead to other types of benefits. /
Intended target group
Youth (up to 30 years old) / Long term unemployed (at least 12 months unemployed during the last 18 months) /
Working age population
  • employment situation (unemployed)
  • main source of income: paid work
Employers-private institutional actors
Companies, labour societies and cooperatives
Actors involved in policy-making/implementation and/or evaluation
  • central state (The central government)
  • citizen communities (Social communities qave made contributions to establish the basis of the presented measures.)
  • regional government (The Autonomous Communities have made contributions to establish the basis of the presented measures.)
Intended output
  • others (Outcomes non published)
Did the innovation have any outcome related to job quantity?
Outcomes non published
Intended and unintended outcomes
Outcomes non published
Clarification of outcomes in terms of impacting resilience and labour market inclusion
updating labour skills
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