Economists have killed lots of electrons trying to muster evidence that employment protection laws (laws limiting employers' ability to fire workers without cause) increase the unemployment rate. They have largely failed. Some countries with strong employment protection rules do have high unemployment rates. However some countries, like Austria and the Netherlands have strong employment protection laws and very low unemployment rates.
So, when the NYT tells us that analysts want Spain's government to make it easier to fire workers as a way to spur economic growth and employment, it is giving us the position of business within Spain, not the consensus within the economics profession on the issue.
If you enjoyed this article, please consider making a tax-deductible donation today. For over 30 years, The American Prospect has delivered independent reporting that exposes corporate power, investigates political corruption, and analyzes threats to our democracy. Unlike many media outlets, we’re not owned by billionaires or corporations—we’re powered by readers like you.
Today’s independent journalism faces unprecedented challenges. Your support makes our reporting possible and keeps our work free and accessible to all. Whether it’s $5 or $50, every contribution helps sustain our nonprofit newsroom.
Join our community of supporters and make a donation today to help keep independent journalism thriving.
Copyright 2025 | The American Prospect, Inc. | All Rights Reserved