This paper (Juan j. Dolado, Floren Felgueroso, Juan F. Jimeno) reviews the experience so far of the Spanish labour market during the Covid‐19 crisis in the light of the existing institutions, its performance during past recessions, and the policy measures adopted during the pandemic. Emphasis is placed on the role of worldwide trends in labour markets, due to automation and AI, in shaping a potential recovery of this (hopefully) transitory shock through a big reallocation process of employment and economic activity. It also highlights some innovations to employment and social policies needed to smooth the reallocation process and lessen the rise in inequality associated to technological trends.
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