Spain’s Unemployment Numbers Beat Expectations
Spanish unemployment is set to tick higher if the latest Unemployment Change figures are anything to go by. The September numbers released this morning are showing that 19.7k more individuals claimed unemployment in the month than did so in August, the August figure was just 8.1k. This may seem like bad economic news for Spain but it needs to be taken in the context of expectations, the anticipated change in unemployment last month was for an increase of 31.3k, this is mainly due to there being no seasonal adjustment applied to the figure and many individuals are coming out of temporary jobs as the summer tourism season winds down.
With around 5.5m people unemployed, Spain is second only to Greece in terms of high unemployment in the Eurozone, the last reported figure showed the unemployment rate to be 24.47%. This figure is inching down as the recovery takes hold in the Eurozone’s fourth largest economy, from a peak of close to 27% at the start of last year government sources are now projecting a rate in the region of 22% by the end of 2015.
Spain’s Economy Minister, Luis de Guindos, last week announced that the Government expects approximately 350,000 new jobs to be created within the economy over the course of 2015, if achieved this would bring the total number of new jobs in 2014 and 2015 to around 620,000. This estimate is based on economic growth projections for the country that have just been revised upward from forecasts made earlier in the year. The Spanish economy, which emerged from recession in the third quarter of last year, is now anticipated to post full year growth of 1.3% in 2014 and 2.0% in 2015. GDP growth of this scale would mean that Spain will now be able to hit it’s EU imposed budget deficit targets of 5.5% and 4.2% this year and next.
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