Unemployment rises to 11.3%
Unemployment went up by 217,200 people in the third quarter of 2008 according to the survey into the active population by the Spanish National Institute for Statistics (INE). The current rate of unemployment is now 11.33% which is a rise of 9 tenths and the highest level since the first quarter of 2004.
The economic crisis and the crash in the housing market are both demonstrated in unemployment figures. In fact, unemployment is now the biggest worry for most Spaniards.
The total number of unemployed in Spain is now 2,598,800 people which is the highest level since the first quarter of 2000. Over the last 12 months, the number of unemployment has gone up by 806,900 people – 45%.
A spokesperson for the Ministry for the Economy explained the recent rises in unemployment saying that the creation of employment in the service sector has not been able to compensate for the loss of jobs in the other sectors of the economy.
The international global financial crisis does not bode well for future economic growth in the short term which means that unemployment is likely to rise even further.
Between July and September 57,600 construction workers became unemployed due to the problems in the construction industry. The service sector is also experiencing problems with 47,700 workers from this sector becoming unemployed during the same period.
Another worrying piece of information published in the survey by INE is that for the first time in 14 years jobs are being destroyed on inter-annual terms. The number of people with jobs was 78,000 less in the second quarter of the year which means that the number of people with jobs has gone down by 164,300 people over the last 12 months – this is the first drop since 1994.
Over the last 12 months jobs in the service sector rose by 133,400 while there were 134,800 less jobs in the construction industry.