Spanish unemployment has fallen to its pre-crisis levels

August 6, 2018 8:04 pmComments Off on Spanish unemployment has fallen to its pre-crisis levelsViews: 89

Spanish unemploymentSpanish unemployment has fallen to its pre-crisis levels. The official statistics show that the new summer labor contracts have reduced the number of unemployed in Spain to 3.13 million, which is the lowest level of nearly a decade and 2 million below the maximum reached in the financial crisis.

The National Institute of Statistics reported that the unemployed fell by 27,141 people in July compared to June in the summer season when jobs are usually created in tourism sector.

The statistical office notes that 19.4 million workers are paying to the Spanish social security fund.

Contrary to the experience before the crisis, now the unemployment rate is falling significantly and, at the same time, the current account exhibits a sustained surplus, close to 2% of Gross Domestic Product. This is probably one of the most remarkable features of the current recovery, and something unprecedented in the recent history of the Spanish economy.

This is the highest level since the global financial crisis has sparked a collapse in Spain’s property sector and the economy has plunged into recession.

Spain had a record 5 million unemployed in early 2013 and unemployment rate skyrocketed to almost 27%. The critics say job creation has been slow since then and wages are low.

Before 2008’s financial crisis began, Spain’s unemployment rate stood at around 8 percent while the latest 2018 studies put the figure at 15.8 percent.

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