Social economy, a lever for change in youth employment

Young people are an essential part of the social economy, bringing a new, fresh view, both from establishing companies to joining others that already exist. They also can benefit from the companies that are developed using this model, which offer better working conditions and fewer entry barriers to youth employment. 

The working situation of Spanish young people reflects a structural problem, marked by high unemployment rates and unstable recruitment conditions. In 2023, the employment rate for young Spanish people, between the ages of 15 to 29 years, reached 39.6%, compared to the 49.7% average in the EU-27, according to data from EUROSTAT. This turns Spain into one of the countries with the lowest youth employment rate in the European Union.  

In this context, the social economy and cooperativism form levers for change, both nationally and on a European level, offering better working conditions for young people. The report Youth employment in the social economy in Spain, developed by the professors from the King Juan Carlos University, Rosa Belén and Rosa Santero indicates that social economy companies facilitate access for young people in equal conditions to the labour market and offer more resilient and better quality employment.

Better working conditions for young people

The organisational principles of the social economy promote economic, social and environmental activities based on a supportive motivation, and they promote the care of people, transparency and a commitment to equal opportunities.  

Consequently, the sector encourages the employment of groups that have difficulty to access the work market, differentiating itself from other companies. In the social economy entities, young people find greater facilities to access their first jobs, better working conditions and greater collective access to entrepreneurship.  

Ana Aguirre, a founding member of the cooperative TAZEBAEZ and a representative of the Committee and the Youth Network of the ACI, underscores the value of social economy cooperatives as “tools for social transformation, and not social tools”.

Aguirre emphasises that it is a globalised movement that is governed by some common values and that seeks solutions for important challenges, from housing to access to funding. “The social economy movement is formed by important companies that generate employment whilst solving social and community problems at the same time.”

Challenges and opportunities for youth employment

Although the social economy plays a relevant role in the improvement of youth employment, there are still significant challenges, as indicated by the study carried out by Belén and Santero. Amongst these is the lack of visibility of the social economy as a producer and employer.  

Along these same lines, Ana Aguirre expresses her wish to demystify the social economy: “we must make the fact that it is a sector within the economy that generates wealth and not only distributes it more visible.” The co-founder of TAZEBAEZ underscores that the organisations that form part of the sector are facing up to important social problems from shared ownership, the management of the personal commitment and the group interest. “Not just waiting for a solution, but rather being an active part of it. The generation of communities and the local identity that social economy and the cooperative movement have, are not found in other places.”

Strategic sectors such as digitalisation and ecological transition still have a low presence of youth employment within the social economy. To reverse this situation, the study underlines the need for designing effective policies that promote youth participation in these areas, encouraging innovation and entrepreneurship amongst young people.  

In spite of the difficulties existing on the labour market that affect youth employment, the social economy and cooperativism are examples of great initiatives for change. Their organisational values acknowledge these differences that characterise the work situation of young people and act to build a fairer and more supportive society.