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Spain wants to cut its workweek to 37.5 hours with unemployment reaching a 15-year low of 11.6%

By
Rodrigo Orihuela
Rodrigo Orihuela
and
Bloomberg
Bloomberg
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By
Rodrigo Orihuela
Rodrigo Orihuela
and
Bloomberg
Bloomberg
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October 24, 2023, 4:16 PM ET
Pedro Sanchez, Yolanda Diaz
Spain's acting Prime Minister and Secretary General of the Socialist Party Pedro Sanchez (L) and the acting labour minister and founder of the alliance of far-left parties Sumar, Yolanda Diaz, smile after signing an agreement to form a coalition government in Madrid on October 24, 2023. The agreement to form a coalition government sealed today by Spain's Socialist party and hard-left Sumar is a key step to reinstating acting Prime Minister Pedro Sanchez for another term. Spain is in political limbo since an inconclusive July general election which was won by the conservative Popular Party (PP) but without enough support to form a government. (Photo by OSCAR DEL POZO / AFP) (Photo byOSCAR DEL POZO/AFP via Getty Images

Spain’s Socialist Party and the far-left group Sumar agreed to cut weekly working hours as part of talks to try to form a coalition government. 

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The workweek would drop to 37.5 hours from 40 hours at present, according to the plan unveiled by acting Prime Minister Pedro Sanchez and Labor Minister Yolanda Diaz in Madrid on Tuesday as they presented the coalition agreement between the premier’s Socialists and Diaz’s Sumar party.

The coalition is still far from forming a government as Sanchez still needs the support of several other parties, most notably two secessionist Catalan groups. He has until Nov. 27 to get backing in parliament for a new term or else new elections will be called. 

It’s unlikely that a potential new Sanchez government will be able to rubber-stamp a reduction in the workweek, as passing legislation will require backing from several parties, including a few with pro-business ties such as the Basque Nationalist Party.

Diaz, a card-carrying Communist and labor lawyer with strong union ties, has sought to be an advocate for workers’ rights since joining the government in early 2020, when the Socialists formed a coalition to govern with a predecessor party of Sumar. 

The plan to shorten the workweek comes as Spain’s unemployment rate stands at the lowest in 15 years, having dropped to 11.6% in the second quarter. The minimum wage has risen by about 47% since Sanchez first formed a government in 2018.

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