Unemployment in Spain
Economic blog
Economic Blog: Unemployment in Spain
Economic Blog: Unemployment in Spain and its Causes
The continuous weakness of Euro-zone economies has resulted in the rising level of unemployment in European Union. Spain was also hit by disease of unemployment around 15 years back in 1996 and since then it has suffered from highest persistent rate in the European Union for several years. This problem was worsened by the credit crunch and the real estate bubble in 2008, which has created a critical situation in Spain due to continuous rise in the unemployment level.
The main problem behind the disturbed situation of Spain is that the Government of Spain has imposed tough measures in order to reduce its debts; therefore the economy has not been able to create jobs for unemployed till now. The economy of Spain also failed in creating jobs due to the global financial uncertainty, from which even the most successful countries of the world are suffering. In fact Spanish economy has suffered and is suffering the effects of the world recession far more than any other most advanced country.
Currently unemployment in Spain has reached to 21.5% and around 5 million people are jobless which means that Spain has the highest jobless rate among all the industrialized countries (BBC news, 28th October 2011). This rate of unemployment is the highest recorded in Spain after 15 years; earlier it reached 21.6% in third quarter of 1996.
According to the Spain's National Institute of Statistics (INE), the unemployment in third quarter of the year has reached to this highest level of 21.6%, despite having a strong summer tourist season because the temporary contracts have been completed and have come to an end.
Unemployment has also badly hit the youth of Spain with several layoffs of people with ages below 25 years, which has made this problem even more critical. There have been continuous...
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