Spain: Unemployment declines to nearly three-year low in Q3
October 23, 2014
The unemployment rate declined from 24.5% in Q2 to 23.7% in Q3. The print undershot the 24.1% rate market analysts had expected and represented the lowest rate since Q4 2011. In absolute terms, the number of unemployed came in at 5.43 million people in Q3, which marked an improvement compared to the 5.62 million recorded in the previous period and represented the lowest number of unemployed since Q4 2011. The largest increase was recorded in the services sector, which added 108,800 jobs. The number of jobs in industry (+71,800) and construction (+43,500) also improved, whereas the agriculture sector lost 73,100 jobs.
The country’s workforce, however, diminished by 44,000 people in Q3 to 22.93 million. The print contrasted the Q2’s 92,000 gain, which had marked the largest increase in three years.
Despite the improvement, unemployment remains astonishingly high and continues to impact the economy, hampering private consumption. The ongoing dramatic labor market situation also translates into reduced revenues in the government’s coffers, thus contributing to concerns regarding the long-term sustainability of the country’s fiscal position.