Thursday 21 January 2010

Spanish Recession - 2



 Whilst government politicians and spokespeople tried to wring what positive signs they could from the unemployment figures for December there was little real comfort to be got from the rise of 54,657 in those registered out of work bringing the total to just shy of the magic 4 million mark at 3,923,603.
The unemployed numbers, according to the Ministry of Labour’s own figures, rose by almost 800,000 during the year or 25.4%. The current totals represent the worst economic crisis in living memory for Spain. In October of last year Spain stood with an employment rate of 19.8%, twice the average for EU countries.


Construction which has been hit so badly in this recession has been helped by government initiatives, putting money into capital spending plans around the country, but the effects of this were beginning to wear out at the end of the year as contracts came to an end and also the winter period is traditionally a poor month for building as weather hits employment.
Compared to December 2008 the number of work contracts generally increased but this hides the fact that the increase has been in temporary contracts (3.67%) whereas full time or ‘indefinido’ contracts has fallen by (17.6%), proving to some experts that the crisis has hit at the solid core of employment.
Experts agree that the rate of job losses is slowing but most see the year ahead being one of continuing high levels of unemployment, a fact the government itself admits.
The handling of the economy and the continuing high levels of unemployment are the two most important issues registered by the public in opinion polls, with four out of five people ranking unemployment as the most important problem facing the country at the moment.
As 2010 gets underway the current forecast for employment and the economy this year in Spain looks bleak, with at least another year before real progress is made towards moving out of recession and with every chance of the spectre of 4 million unemployed being realised sooner rather than later.

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