Spain: Unemployment rate falls to lowest level since the end of 2008
July 26, 2018
The jobless rate declined to 15.3% in the second quarter, coming in below the 16.7% logged in the first quarter and marking the lowest reading since Q4 2008. In absolute terms, the number of unemployed workers fell to 3.49 million, a notable reduction from the 3.80 million jobless in the first quarter.
Employment gains were centered in the services sector, which rebounded from the losses it posted in the previous quarter by adding 371,400 jobs in the second quarter, largely linked to the tourism industry. Jobs were also created in the construction (+63,400) and industrial (+46,400) sectors. However, jobs were shed in the agricultural sector (-11,300), reflecting the end of the winter crops season. Temporary jobs were up 233,700 in Q2, slightly above the 231,400 permanent positions created. Meanwhile, the total workforce rose by 163,900 people in Q2 to a total of 22.8 million.
Spain Unemployment Rate Forecast
FocusEconomics Consensus Forecast participants expect unemployment to average 15.4% next year, which is down 0.1 percentage points from last month’s projection. For 2019, the panel foresees an unemployment rate of 14.2%.
Author: Javier Colato, Economist