Assessing the impact of austerity on care jobs. The case of the Spanish long-term care system

A universal long-term care system was implemented in Spain in 2007 to address the issue of an ageing society and expand the welfare state. Nevertheless, the austerity policies adopted since the outbreak of the economic crisis have slowed and distorted its development. One of the most negative consequences has been its impact in terms of employment creation, which is far below all predictions. This study quantifies the loss in job creation by comparing the actual implementation with the expected scenario and explains the reasons for the gap. Results show that effective employment only accounts for 51.9 percent of the initially estimated employment. Almost the entire gap can be explained by two causes: delays in the allocation of services (waiting list) and the greater provision of cash allowances for informal care over care services. The case of Spain is highly relevant to the implementation of long-term care systems in other countries since it shows how austerity policies can significantly reduce the job creation benefits that these care systems are expected to have.