But then, systematic discrimination against new entrants to the labor market and similar barriers to entry have long been typical of many European nations, and it's one of the reasons that youth unemployment over there is such a big problem even in healthier economies than the current one. A quick Google suggests that Spain's youth unemployment rate is about 54% (... contrast with the #1 EU outlier, Germany, with the most liberalized economy and youth unemployment at 7.8%)
Unfortunately, this is probably one of those economic systems typified by positive feedback cycles.