REDUCING PUBLIC SECTOR
EMPLOYMENT BY LIMITING
RECRUITMENT: THE SPANISH
EXPERIENCE
Isabel Hernández
MINISTRY FOR PUBLIC
ADMINISTRATIONS
THE KEY POINTS
1. OBJECTIVES OF THE SPEECH
2. FIGURES ARE SELF EXPLANATORY
3. THE MAIN REASONS
4. THE CHANGE IN THE TERRITORIAL
ORGANIZATION OF THE STATE
5. THE POLICY OF LIMITATIONS FOR THE
RECRUITMENT OF NEW EMPLOYEES
6. THE PRESENT TENDENCIES
1. OBJECTIVES OF THE SPEECH
To explain the reduction in national public
sector from 1978 to the present.
To examine the two main reasons that
justified the change.
2. FIGURES ARE SELF EXPLANATORY
Public servants before
1978: 1,713,372, all of
them belonging to
State Government (not
including Local
Government).
Public servants at
2006 (State
Government):
546,716.
3. THE MAIN REASONS
1. A change in the
territorial organization of
the State:
Before 1978 Spain was an
unitary and highly
centralized State.
After 1978 three different
levels of autonomy: State,
Autonomous Communities
(17), and the provinces (50)
and municipalities (8,104)
(local Administration) plus
the autonomous cities of
Ceuta and Melilla.
2. Since 1996,
implementation of
basic limitations for
the recruitment of new
employees.
4. THE CHANGE IN THE TERRITORIAL
ORGANIZATION OF THE STATE
The outcome of the change in the territorial
organization of the State are:
A radical transformation of the State and the public
administration through a process of extensive political
and administrative decentralization.
The transfer of State civil servants to the Autonomous
Communities to provide the new
territorial/administrative step.
A new legal framework to allow the new structure
(12/1983 Act plus Royal Decrees).
The results are as follows on the next slide…
5. THE POLICY OF LIMITATIONS FOR THE
RECRUITMENT OF NEW EMPLOYEES
Implementation of basic limitations for the
recruitment of new employees consists of:
Policy directed to reduce the number of staff in both,
Ministries and Autonomous bodies (25% for the
personnel replacement rate).
Affects both, the State and Regional Governments.
Excludes specific groups where it was necessary to
incorporate a large number of new staff (Armed Forces,
personnel in service of Judicial Administration).
5. THE POLICY OF LIMITATIONS FOR THE
RECRUITMENT OF NEW EMPLOYEES (II)
This policy was adopted during the years of
Partido Popular (Popular Party)Government
(1996-2004), whose ideology is liberal. For that
reason there was a strong tendency to reduce the
public sector in favor of the private sector. In this
period many semi-private institutions and private
corporations were created.
In recent years, especially from 2005 and 2006,
the tendency is just the opposite, in favor of the
public sector, due to the present government of
Partido Socialista (Socialist Party).
5. THE POLICY OF LIMITATIONS FOR THE
RECRUITMENT OF NEW EMPLOYEES (III)
This input is also the tendency within the
Autonomous Communities, depending on
the kind of government they have, as we
can see in the following slide (using the
criteria of population size).
VALENCIA
2.50
PAÍS VASCO
2.74
MURCIA
2.94
MADRID
2.46
LA RIOJA
3.05
GALICIA
2.82
NAVARRA
3.52
MELILLA
1.85
CANARIAS
2.87
CASTILLA Y LEÓN
3.35
CEUTA
1.90
BALEARES
2.13
CASTILLA LA MANCHA
3.22
CATALUÑA
1.99
ASTURIAS
2.97
CANTABRIA
3.10
AGE
1.22
ANDALUCIA
2.96
ARAGÓN
3.01
EXTREMADURA
4.07
Hasta 2%
Entre 2 – 3%
Entre 3-4%
Más de 4%
5. THE POLICY OF LIMITATIONS FOR THE
RECRUITMENT OF NEW EMPLOYEES (IV)
The following slide shows the proportion of
semi-private organizations that have been
created in the last few years (functional
decentralization).
AGE
Andalucía
Aragón
Asturias
Baleares
Canarias
Cantabria
Castilla La Mancha
Castilla y León
Cataluña
Extremadura
Galicia
La Rioja
Madrid
Murcia
País Vasco
Comunidad Valenciana
0
2
Sometidos a derecho público
4
6
8
10
Sometidos a derecho privado
12
14
16
Sociedad Anónima
18
5. THE POLICY OF LIMITATIONS FOR THE
RECRUITMENT OF NEW EMPLOYEES (V)
The tools:
The Annual Budget
Act.
The Royal Decree for
Public Employment
that Government
approves yearly.
The system:
Convocation notices for the
incorporation of new staff
have to be centered in
sectors considered as an
absolute priority or which
affects the operation of
essential public services.
The total number of
vacancies for new access
cannot be higher than 25%
of the outgoing staff
anticipated for the relevant
budget year (personnel
replacement rate).
5. THE POLICY OF LIMITATIONS FOR THE
RECRUITMENT OF NEW EMPLOYEES (VI)
The effects of this restrictive policy are:
It is effective in reducing the number of staff,
but systematic planning and reorganization of
staff must accompany it.
The reduction in the number of staff results in
an excessive pressure towards short term
employment.
The tendency to transform short term
employment into permanent employment.
6. THE PRESENT TENDENCIES
Strengthening the public sector.
Return to the situation pre-1996.
Strong tendency to transform short term
employment into permanent employment.