This report is the only one at state level that annually presents Spanish society, by order of the Government, with an analysis of the evolution of the economic scenario, the labour market and labour relations, as well as life quality and social welfare, shared and agreed by the most representative business and union organisations and entities and associations in the agricultural, shipping and fishing, consumer and social economy sectors.Mention must be made of the comparison of many of its analyses, based on this 2005 edition, in the context of the European Union, to understand the orientation of the main indexes and the behaviour of the basic parameters that govern the evolution ofour society. Mention must also be made of the analysis made of the life quality in the country, a focus that provides very detailed knowledge of aspects that have an immediate effect on citizens' living conditions and opportunities, which are closely linked to the United Nations' concept of human development. It compares indexes among the 25 members of the EU to obtain detailed knowledge of the differencesin the living conditions of the Community population as a whole.In general, the Spanish economy continued its dynamic line in 2005. In real terms and again due to the boost in internal demand, the growth rate reached 3.4%, higher than the EU-25 as a whole, which closed the year with a growth rate of 1.6%. This growth was accompanied by an increase in employment, albeit largely of a temporary nature. The report acknowledges the initiatives taken by the Government to redirect the economic policy towards productivity, including the Vitalisation Plan, the National Reform Programme within the framework of the Lisbon Strategy and the tax reforms, including the passing of the Tax Reform Bill. At the same time, it points to the urgent need to promote investment in R&D&i and to the improvement in certain aspects of education and professional training. The section on the labour market highlights the good behaviour of its main indicators, which continued their sustained improvements in 2005, with a growth in employment and a fall in unemployment that were greater than in the European Union. The creation of paid employment in the private sector increased by 700,000 people, with a repetition of the significant creation of the number of women employed, which totalled almost 420,000, although this figure is still insufficient. Emphasis is placed on the effect immigration has had on the structure of the Spanish labour market over the last five years, as well as the extraordinary legalisation process of foreign workers and the decisive influence social dialogue has had on the said process. This legalisation process has produced good results for employment, the recognition of both employers? and workers? rights and obligations, as well as contributions to the Social Security system, since it has led to the affiliation of more than 500,000 people.However, the report also underlines its concern for certain deficits in employment equality in our country. Indeed, the annual average of the proportion of employees with a temporary contract exceeded 33%, which represented an increase of around 1% in comparison with 2004, although there was also an increase in the number of temporary contracts that were converted into open-ended contracts. As for the life quality of Spanish citizens, the report emphasises areas such as education, health, housing, consumerism and the environment, which enable us to verify the evolution of our society?s well-being.In the field of education and in accordance with the commitments to reinforcement laid down in the Lisbon Strategy, the report states that the situation in Spain reaches levels of convergence with regard to academic participation and spending on education and it also verifies a rapid approach to European averages in participation in ongoing training and in the proportion of science and technology graduates. However, it shows concern for the proportion of early school leavers (30.8%) and the low proportion of young people that have reached the higher secondary level. Again, one of the subjects analysed is housing, whose increased prices, despite a moderate deceleration, continued to produce an evident worsening of accessibility to housing and an increase in the debt levels of homes. Notice is given that the demand continues to grow due to the fact that housing is considered as an investment asset, as well as a result of intense immigration.The section on social welfare shows that Spain's healthy economic situation in recent years has not led to a similar reinforcement in social welfare, albeit true that it has had a positive effect on the accounts of the Social Security system.