SPAIN recorded a welcome fall in unemployment of 111,500 in April, encouraging Prime Minister Mariano Rajoy to ask the Spanish people for a ‘fair trial’ in a radio interview.
This record drop in unemployment has been attributed to a bumper Easter for trade and the start of the tourism season.
In the same month, over 133,700 people signed on to the Social Security system, the second highest increase since 2005.
Rajoy, who has staunchly defended the labour reforms adopted by his government, made this promise to Spain’s people: “In the coming months there will be growth.”
“I am encouraged and hopeful for the future because this month has broken a trend,” he said, adding: “Although things cannot be resolved in a day, I assure you we have passed the worst.”
Unemployment fell in all sectors of Spain’s economy, with the service sector leading the way, with a drop of 84,706, closely followed by construction, manufacturing and agriculture.
The Social Security ministry also claimed a total of 1.29 million labour contracts were signed during the month, up 6.57% from March.
However, Spain’s total level of unemployment remains very high, currently standing at 4.7 million people.
A “fair trial”? If only….
The FT stated this week that growth is accelerating in Spain. Other international economic bodies have stated the same. If true, this augurs well for growth and job creation. Unlike the last boom there shouldn’t be an excessive rise in house prices, as there is a large number of existing properties to sell. As always monitor rent levels – at the moment they are at low levels that enables labour mobility.
Unemployment in Spain is currently at catastrophic proportions. Rajoy should be praying the situation improves – dramaticaly. His country is a basket case.
4.7 million people unemployed with a population of 47 million(ish) sounds frighteningly high to me. If the UK had this level of unemployment, Ed Balls would have a field day.
More work required to kick start the housing market, attract inward investment and encourage new business start ups.
I can understand the Spanish people wanted change when they voted in Rajoy, but this government is truly attrocious. Problem is there is no viable alternative. Spain looks to be governed by corrupt and incompetant people for generations to come, and that’s a most depressing thought.