FOREWORD -- TABLE OF CONTENTS -- LIST OF ABBREVIATIONS -- EXECUTIVE SUMMARY AND POLICY RECOMMENDATIONS -- CHAPTER 1: Economic and labour market performance -- Introduction -- A. Economic developments before and during the crisis -- B. Labour market performance -- C. The recovery and adjustment process -- D. Concluding remarks -- Annex A: Detailed labour market developments by region -- References -- CHAPTER 2: Policy developments to support the adjustment process -- Introduction -- A. Measures to support the financial sector and aggregatedemand -- B. The fiscal consolidation plan -- C. Recent reform initiatives to foster adjustment -- D. Policy considerations -- References -- CHAPTER 3: Improving competitiveness and fostering productivity -- Introduction -- A. Proximate factors of external competitiveness before thecrisis -- B. Underlying causes of competitiveness before the crisis: multi-factor productivity, job quality and investment -- C. Recent developments towards improved competitiveness -- D. Policy considerations -- Annex A: An empirical analysis of the determinants of overall labour costs: Wage and non-wage costs -- References -- CHAPTER 4: Labour market reform: Overview and policy challenges -- Introduction -- A. Employment protection legislation -- B. Part-time employment -- C. Policy considerations -- References -- CHAPTER 5: The role of employment and skill policies in supporting structural transformation -- Introduction -- A. Active labour market policies -- B. Training and employment policies for youth -- C. Unemployment benefits and labour market objectives -- D. Public employment services: Role of effective delivery -- E. Policy considerations -- Annex A: Specific labour market measures introduced to mitigate theeffects of the crisis.

Annex B: Share of population in Spain aged 18-24 by region who leave high school and do not continue with other education or training -- References -- LIST OF FIGURES -- Figure 1.1 Annual real GDP growth in Spain and the EU-15, 1996-2007 (percentages) -- Figure 1.2 Real household debt as a percentage of disposable income, 1995-2008 (percentages) -- Figure 1.3 Housing boom: Real house prices, Q1 1996-Q1 2010 (Q1 1996=100) -- Figure 1.4 Real GDP growth (quarterly real GDP rate, per cent change from one year earlier) -- Figure 1.5 Real GDP and employment growth in selected countries (change in 2009 compared with 2008) -- Figure 1.6 Unemployment rates by age, gender and highest educational attainment (quarterly rate, percentage) -- Figure 1.7 Changes in employment by sector and type (year-on-year changes) -- Figure 1.8 Factors contributing to reduction of total hours of work during the crisis (percentages) -- Figure 1.9 Quarterly real GDP by sector: Q4 2010 compared with Q4 2009(percentages) -- Figure 1.10 Employment changes by sector, Q1 2011(percentage change from previous year) -- Figure 2.1 Reduction of the public deficit through the Fiscal Consolidation Plan -- Figure 3.1 Annual growth of labour productivity in Spain and the EU-14, 1996-2007 (percentages) -- Figure 3.2 Contributions to gross value added growth, by input, 1981-94 and 1995-2007 (percentages) -- Figure 3.3 Contributions to gross value added growth by factors in the labourinput, 1981-94 and 1995-2007 (percentages) -- Figure 3.4 Percentage of the population that has attained tertiary education in 2009, by age group (percentages) -- Figure 3.5 Skill composition of employment by occupation (percentages) -- Figure 3.6 Changes in employment and employment participation, by sector (end of year changes, thousands).

Figure 3.7 Evolution of total investment in real terms and as a percentage of GDP,1995-2010 -- Figure 3.8 Share of investment by asset type in total investment in 1995 and 2007, and in the change between 1995 and 2007 (percentages) -- Figure 3.9 Increase in ICT capital stock as a share of growth in real fixed capitalstock in Spain, the United States and the United Kingdom, 1980s, 1990s and 2000-07 (percentages) -- Figure 3.10 Debt indicators in Spain and a select group of Eurozone countries (percentages) -- Figure 3.11 Recent trends in price, cost and productivity indicators since the onset of the crisis, 2007-10 -- Figure 3.12 Top five growing export sectors, February 2008-February 2010 (millions of Euros and percentages) -- Figure 3.13 Increase in comparative advantage during the period January 2010-January 2011 -- Figure 3.14 Fall in investment by asset type between Q4 2008 and Q4 2010, and share of the fall in the decrease of total investment (percentages) -- Figure 3.16 Change in the number of firms and in employment by enterprise size as a share of total change, before and during the crisis (percentages) -- Figure 3.17 Total labour costs simulations (Index: Q1 2010 = 100) -- Figure 4.1 Unfair dismissals of permanent contracts as a share of total dismissals (percentages) -- Figure 4.2 Incidence of part-time employment across selected OECD countries, 2009 (percentages) -- Figure 5.1 Spending on ALMPs and number of participants -- Figure 5.2 Spending on employment incentives as a share of total spending on ALMPs, 2008 -- Figure 5.3 New contracts with employment incentives 2006-09, by type of contract -- Figure 5.4 Spending on training measures as a share of total spending on ALMPs, 2008 -- Figure 5.5 Share of trainees who found a job after training, by group (percentages).

Figure 5.6 Share of population aged 18-24 who leave high school and do not continue with other education or training (percentages) -- Figure 5.7 International PISA scores for 2009 -- Figure 5.8 Youth participation in labour market programmes, 2008 (share of participants under 25) -- Figure 5.9 Recipients of unemployment benefits and other replacement incomes in Spain (percentage of the labour force) -- Figure 5.10 Ratio of spending on income support to spending on active labour market measures, 2007 -- Figure 5.11 Spending on PES as a share of the total spending on ALMPs, 2008 -- Figure 5.12 Average number of unemployed clients per PES staff -- LIST OF TABLES -- Table 2.1 Fiscal support -- Table 2.2 ICO credit lines created or enhanced as part of Plan E (million euros) -- Table 2.3 Fiscal stimulus vs. consolidation packages for the G20 and selected EU countries -- Table 3.1 Global Competitiveness Index rankings by competitiveness determinant, 2010 -- Table 3.2 Average annual change in price, cost and productivity indicators between 2000-2007, Spain and the Eurozone (percentages) -- Table 3.3 Collective bargaining and wage-setting in selected European countries -- Table 3.4 Wage guidelines in selected EU countries -- Table 3.5 Extent of wage indexation in the selected countries (percentage of affected workers) -- Table A3.1 Definitions and sources of variables used in the regression analysis -- Table A3.2 Regression results -- Table 4.1 Timeline of labour market reform: Dismissal costs for individual cases -- Table 4.2 Severance pay gap between open-ended and temporary contracts (wage days per year of service) -- Table 4.3 Regulation of part-time work in selected European countries -- Table 4.4 Length of court process in selected OECD countries -- Table 5.1 Unemployment benefits system in selected EU countries -- LIST OF BOXES.

Box 1.1 Household debt in Spain compared with other countries -- Box 3.1 Employment creation during the pre-crisis boom was based on services and construction sector jobs -- Box 3.2 Investment in ICT: Definitions and considerations -- Box 3.3 Product market reforms in Spain -- Box 4.1 Labour market reform in Austria in 2003: Overview and evaluation -- Box 4.2 Workers' Capital Fund -- Box 4.3 Social protection for temporary workers: Examples from selected countries -- Box 5.1 Reinforced Public Employment Services: The case of Germany -- Box 5.2 Improving PES performance and accountability: Some country examples.