The unemployment rate in Spain has risen to 12.67% in Q3 from 12.48% in Q2, whilst overall employment in the country also increased.
According to the data from the National Statistics Institute, the rise was fuelled by an increase in people claiming to be seeking employment.
The number of unemployed people increased by 60,800 in Q3 to a total of 2.98 million, despite the creation of 70,000 jobs. Most roles were lost in the tourism sector, services and agriculture.
Between July and September, employment continued to grow, up by 2.57% compared to the third quarter last year, Reuters reports, to 20.54 million jobs.
In addition, the number of permanent contracts in Spain rose by 444,200 in Q3.
Spain was one of the worst-affected by the pandemic-fuelled economic fallout, with GDP plummeting 10.8% in 2020, predominantly due to its heavy reliance on tourism.
Around half a million people lost their jobs in Spain in 2020, with the country having one of the highest unemployment rates in the Organisation for Economic Co-operation and Development, The Local reports.
The Spanish government forecasts the jobless rate will fall to 12.2% at the end of next year, despite the economic slowdown, amid skyrocketing inflation and uncertainty stemming from the war in Ukraine.
Yet in contrast, many analysts aren’t as upbeat. According to investment bank ING, the country’s unemployment rate will rise gradually to 14.3% in Q3 2023. The bank predicts the fourth largest economy in the eurozone will tip into recession in Q4 this year, continuing until Q1 2023.
“Business confidence has also deteriorated sharply in recent months, which will encourage companies to be more careful with new hires,” said ING economist Wouter Thierie.
However, the increase in permanent contracts will lead the rise in the jobless rate to “be less pronounced than during previous recessionary periods,” he went on to say.
deVere Spain’s Public Relations Department deals with all areas of the media and external communications including international, national, regional, local, trade, consumer, print, broadcast, social and online. The Department aims to provide a helpful service to journalists, broadcasters and editors, amongst others, and reply to all media enquiries, including urgent enquiries out of hours, within agreed deadlines. Our press office does not have access to client details and will not be able to assist with individual client enquiries. Please contact deVere Spain’s Head of Public Relations on [email protected] or call +44 2071220925