With an unemployment rate of about 21.3 % (2010), Spain has the highest one of Western Europe. This is also the highest reported unemployment rate by the country since 1997.
Especially in Andalusia the unemployment rate is alarming. After the Canary Islands, Andalusia is the region with the second highest unemployment rate of Spain (app. 30%). With 31,87% Cadiz is on the top and followed by Almeria 27, 79%, Granada 26,89 % and Huelva 26,75%.
The activator for this dramatic increase in Spain’s unemployment rate was of course the economic crisis in 2009. But there are also regional reasons for the increasing unemployment rate. For example, Andalusia is an agricultural region, but the service sector predominates. As “The European Job Mobility Portal” said, the construction sector helped to drive Andalusian production during the boom years. But over the last two years the construction sector has declined considerably. Furthermore, the industrial sector of Andalusia is less developed than in other regions. Given the loss of momentum, “The European Job Mobility Portal” anticipates that production is unlikely to improve significantly in the short term.
Another problem is the widely spread use of short-term contracts. The sector, which generated the largest number of permanent contracts, was the service sector (2010). This sector is also the one, which recorded the highest employment levels. Followed by agriculture, construction and industry. But sectors such as agriculture, construction and industry mainly offer short-term contracts to their employees. Actually, the agriculture and construction sectors are the ones with the highest recruitment volumes in the region. But as already mentioned, those are also the sectors, which offers almost only seasonal jobs.
So what do you think can be done to change Spain’s alarming unemployment rate? Do you think that Spain can manage this situation by itself or do you think they need help from the EU 27?