In Spain, Low Wages Are Becoming More Common More than 1 in 5 people lives below the poverty line in Spain, which has the highest rate of unemployment in the eurozone — more than 21 percent. And an increasing number of Spaniards are making ends meet with low pay and no benefits.
NPR logo

In Spain, Low Wages Become Increasingly Common

  • Download
  • <iframe src="" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript
In Spain, Low Wages Become Increasingly Common

In Spain, Low Wages Become Increasingly Common

  • Download
  • <iframe src="" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript


And finally to Spain, where more than one in five people live below the poverty line. With the Eurozone's highest unemployment rate, Spain recently eased restrictions on how long companies there can keep workers on temporary contracts. The idea is, it's better to have people employed temporarily, than be out of jobs altogether. Lauren Frayer reports from Madrid on how more and more Spaniards manage to make ends meet with low pay and no benefits.

LAUREN FRAYER, BYLINE: Welcome to a botellon, the Spanish term for drinking outdoors in city squares like this one in downtown Madrid.

DAVID HORCAJADA: Five years ago, believe me, there were really few people drinking on the streets.

FRAYER: David Horcajada fishes a beer can out of his backpack.

HORCAJADA: Right now, everybody is drinking on the street because people cannot afford to pay for, you know, drinks at bars. So since we're Spanish and we do drink and we party a lot, so it doesn't matter if we don't have money. We'll just keep doing it. And that's what botellon comes from.

FRAYER: Many in the crowd are what locals call mileuristas, workers on temporary contracts that pay a mil - a thousand - euros a month, barely $1,400. That's considered below the poverty line for a family in Spain, and just above it for a single adult. The word used to have a negative connotation. But in this economy? Not anymore, says Horcajada.

HORCAJADA: When Spain was booming, like five years ago, just really young people, normally uneducated, were mileuristas. The thing is that right now, a lot of people are becoming mileuristas, and a lot of people would like to become mileuristas, if they could.

FRAYER: Ester Sanz would love to join the ranks of mileuristas. She's a certified teacher but can't find a full-time job.

ESTER SANZ: I finished my degree in June last year, and I have a job, but it's only for one hour a day, so it's only 200 euros, but nothing else.

FRAYER: On 200 euros a month, less than $300, she has to live with her parents, and clip coupons.

: You try to go with the offers, one Euro Wednesday or things like that, and try to save money as much as you can.

FRAYER: Spain's jobless rate tops 21 percent, and it's more than double that for young people. Even for those who have jobs, a third are on temporary contracts, with low pay and no benefits. Gayle Allard is an economist at Madrid's IE Business School.

GAYLE ALLARD: This is what young people do. And they're lucky, they've got a job because the unemployment rate for young people is 46 percent. So they're the outsiders in the labor market.

FRAYER: Spain has a two-tiered labor system. Workers either have temporary contracts or jobs for life. It's a key issue in the national elections November 20th. But it's also the third rail of Spanish politics, where unions are powerful. Allard explains.

ALLARD: When somebody talks about labor market reform, they think they want to turn the market into something like the U.S. market. But what they don't realize is that they've got 30 percent of their workers with no job security whatsoever, in really inferior conditions, so that the others can enjoy the kind of job security that they have.

FRAYER: Back in the plaza, David Horcajada describes how his generation increasingly makes do on 1,000 euros a month.

HORCAJADA: Either you live with your parents or you share an apartment. The problem is, if you're a mileurista and you're, for example, 30 years old, you're not going to be sharing an apartment when you're 30 years old. You want to have your own apartment. You want to have your own life. And if you're earning 1,000 euros, there's no way you can do that in Spain. It's not a cheap country.

FRAYER: For NPR News, I'm Lauren Frayer in Madrid.

Copyright © 2011 NPR. All rights reserved. Visit our website terms of use and permissions pages at for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.