Big jump in spanish unemployment

Posted on February 3, 2009. Filed under: finance | Tags: europe unemployment, jose luis rodriguez zapatero, labour ministry, spanish, unemployment |

The number of people out of work in Spain increased by 199,000, or 6%, in January from the previous month, official figures show.

The record monthly jump brought the total jobless number to 3.3 million, the highest since 1996, the Labour Ministry said.

The ranks of Spain’s unemployed have swelled by more than one million in the past year.

At 14.4%, the Spanish unemployment rate is by far the highest in the EU.

“We continue to be affected by the serious international financial crisis, the lack of of liquidity and the fall in consumer spending,” said Maravillas Rojo, Spain’s employment secretary.

Spain was until recently one of Europe’s fastest growing economies, but the global financial crisis has hit the country hard, particularly affecting the property and construction sectors.

EUROPE UNEMPLOYMENT Netherlands 2.7% UK 6.1% Germany 7.2% France 7.9% Spain 14.4% Source: Eurostat

The European Commission has forecast that the unemployment rate will continue to increase in Spain to 16.1% in 2010 and 18.7% the following year.

In another sign of the weakening economy, Spanish car sales fell by 41.6% in January from a year earlier.

Prime Minister Jose Luis Rodriguez Zapatero met financial leaders on Monday to urge them to boost lending.

He also told those out of work that the country’s economic stimulus plan would begin taking effect soon, creating new jobs.

“We are going to overcome the economic crisis,” Mr Zapatero said earlier.

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