Orientation, unique work history and use of artificial intelligence: the Government approves the new employment law

The Council of Ministers approved this Friday in first reading the new employment law, which aims to carry out a radical transformation of the public employment services that, together with the labor reform, will tackle the problems and inefficiency of the market working in Spain.

The standard is very broad and contains important modifications, affecting the very structure of public administrations and their organization.

In this sense, the best example is the objective of converting the current Public Employment Service (SEPE) into a Spanish Agency for Employment that, on the one hand, it is more efficient so that citizens can find work (or keep the one they already have) and, on the other, they can measure their activity and the level of employability achieved to correct errors and reorient their policies if necessary.

The law is based, fundamentally, on 11 draft measures whose objective is the elaboration of a guaranteed catalog of services for job seekers. In the first place, following the trail set by active employment policies, the development of an individualized profile of the user will be promoted that allows, through statistical evidence, to improve their employability.

The skills, competences, age, territorial scope, the membership of a priority group, and the time and reasons for unemployment, among other factors, with the aim of developing personalized itineraries and routes that allow you to quickly find a job.

This personalized analysis will be possible thanks to the use of artificial intelligence and the digitization of public administrations, so that the future Spanish Agency for Employment will be in charge of crossing these data and guaranteeing that the algorithms and digital tools for massive data processing do not penalize job seekers and do not introduce biases (there are examples of algorithmic tools that have ‘learned’ and internalized gender biases, for example, penalizing women).

Entrepreneurship and self-employment

For almost a year, the counselors of the public employment services have been working with a tool called ‘Senda’, which crosses data in a massive way with the aim of offering effective personalized itineraries for job seekers. According to sources from the Ministry of Labor, this tool has been “learning” and “improving” the crossing of data, so that each time it “offers better results”, in a process that is still ongoing.

Another objective is that the users of these services can count on personalized attention and, if possible, face-to-face; In this sense, Work is handled a ratio of 7,000 counselors for every million jobseekers. The counselors must offer personalized itineraries adapted to each citizen based on their needs.

There will also be important changes in the drive for entrepreneurship and self-employment. From Work it has been detected that until now this impulse is very generic and that it entails important risks (from the public administrations, citizens seeking employment are encouraged to be entrepreneurs without any basis).

To improve this impulse, an advisory model for entrepreneurship and self-employment with guarantees will be implemented, the central element of which will be the realization of a feasibility audit to analyze whether entrepreneurial projects have a basis for development, so that self-employment ceases to be an “adventure” and its risks can be minimized.

The standard includes a minimum periodicity of job offers from the public employment services: there may not be less than one job offer per year and, when six months pass without an offer, the reasons that have led to that situation will have to be justified. The system of the Spanish Agency for Employment must be informed of the vacancies that occur in companies, so that the labor reality of each moment, the supply and demand of employment is known first-hand.

One of the main novelties of the law is the creation of a Unique personalized work record that facilitates job search. The promotion of local employment services also have an important place in this legislation; As a novelty, when there are local entities (city councils) with resources to deploy active employment policies, the Employment Sector Conference may allocate budget items through the autonomous communities so that the councils can develop them autonomously.

All these modifications will be borne by the 2022 General State Budgets (which allocate the largest item in history, 7,500 million euros, to active employment policies), the European reconstruction funds and the SEPE’s own economic resources .

Along with the employment law, the Council of Ministers has also approved the Employment Activation Strategy. The standard, which is approved on first reading, it will have to be approached with the social agents and with the autonomous communities before final approval.

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