Spain: Unemployment hits record 25%
October 26, 2012
In the third quarter, the unemployment rate rose to 25.0%, which was up from the 24.6% rate recorded in the second quarter. At the current level, the unemployment rate is well above the 21.5% registered in the same period last year and marks, in fact, a new record in the country's history. In absolute terms, the number of unemployed reached 5.78 million, up from the 5.69 million recorded in the second quarter. According to the survey, the economy lost 96,900 jobs in the third quarter, driven by declines in construction (-56,100), services (-32,700) and agriculture (-11,900). Only the industrial sector recorded gains in employment over the previous quarter, adding 3,700 jobs. Rampant unemployment will continue to hamper private consumption in the near future and puts additional pressure on the already strained government's fiscal position, as unemployment benefits payments increase.