March 8, 2013 at 9:40 am #57317
Six million out of work is a figure reminiscent of the near-feudal agrarian state the country used to be.
Not since the days of Franco has Spain suffered such high unemployment rates. The country was virtually a feudal, agrarian economy the last time almost six million workers were unemployed.
This year Spain is preparing for another year of recession. Output is expected to fall after the economy worsened in the final three months of 2012 and the housing crash that wrecked the country’s banks showed no signs of abating. Factory and energy production figures on Friday are expected to show industrial output was down 6% year on year in January. Average house prices remain 36% below their 2008 peak.
Youth unemployment, which has spurred thousands of young people to protest in Madrid’s main squares, has climbed to 56.5% without hitting a ceiling.
As well as its troubled banking sector, Spain suffers from a lack of competitiveness inside the eurozone and excessive household and company debts. Under pressure from Brussels, the government’s answer to its own escalating debts has been to impose harsh austerity measures.
Unlike Italy, which has almost balanced its budget after a clampdown on spending, Spain is expected to spend more than it receives in taxes in 2013 in breach of eurozone rules. The government deficit is expected to fall to 4.5% after hitting 6.3% last year. Only in 2014 is it expected to fall within Brussels’ 3% ceiling.
March 8, 2013 at 11:05 am #115991
Unemployment rate was 26% in December, probably at least 28% now!
March 8, 2013 at 11:53 am #115992
I believe unemployment was very low under Franco and there was significant industrial growth. Not that I support him or anything, but just saying.
March 8, 2013 at 2:02 pm #116001
Spanish could devalue their currency and further lot of people during Franco were on the pay roll of various Government Department. They would get their salary & did not even show up for work as there was no work for them. This perhaps made the next generation feel that money is just given to them and they do not need to work or apply themselves.
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