Unemployment Rate in Spain reaches Record High

The labour market situation in Spain is still dramatic. In March the number of the unemployed rose again and it’s over 4.3 million now. As a result Spain has the highest unemployment rate within the European Union with 21.3 per cent. This is twice as high as the rate of Germany and France.

The construction sector has to struggle with the biggest impact. In hope that numerous foreign investors would invest money in property the sector build more and more – now Spain is full of invest ruins.

There is also a big problem for the young people. The youth unemployment rate in Spain is at 43.5 per cent (February 2011). This is three times higher than the world’s average. Most employments are limited and good educated young people work in jobs which are under their qualifications (44 per cent).

To help Spain out of this crisis Manuel Del Pozo, deputy editor-in-chief of the periodical “Expansion”, said that the country has to fix their financials. Also the labour market should become more flexible and the pension scheme needs to be reformed. But first Spain has to set the basics for economic growth and new jobs.

The impact of the construction sector hit Spain so hard because the economy is too much one-sided orientated.

From 2002 to 2008 nearly 60.000 apartments were built, these amounts to approximately 1.000.000 – a lot of those apartments didn’t find any purchaser. On top the processing industry is too less developed and for that reason the sector doesn’t give any other perspectives for construction workers. Therefore lots of Spanish people jumping from one underpaid limited job to the next. Gross wage under 1.000 euros are very common.





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