August sees 194,000 jobs disappear, and a generalized rise in unemployment

Spains unemployment problem

The first “end of the summer”, the end of August, leaves in unemployment the effects of an economy that continues to rely on tourism as its main source of growth. Thus, unemployment rose by 21,884, in almost all communities, led by the Basque Country and the Mediterranean area. This is an advance in an upward curve that tends to be more so in September, when visitors say goodbye definitively. Moreover, the Social Security lost, on average, 193,704 contributors.

Overall unemployment figures are close to those of 2008. However, “employment is more fragmented than ever. On paper, indefinite-term contracts have improved notably, with 37.47% of total contracts in August, compared to the traditional 8 or 9%. But, scratching into that figure, only 42% were full-time contracts. Thirty-four percent were permanent contracts and the remaining 24% were part-time contracts,” analyzes Joaquín Pérez, secretary general of USO (Unión Sindical Obrera).


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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.