Worsening job situation in Spain

Spain has been performing quite consistently poor on the job front in the Eurozone from the past few days. The recent report from Eurostat reveals that there are as much as one out of every four person from Spain is unemployed. For younger members of the workforce, the situation is even worse as unemployment for people under 25 is approaching 53% now.

According to the figures shared by European Central Bank, Unemployment has been a cause of concern for the Spanish Economy since 2010 and rose from 20 percent back then to 25.1% till now. The Spanish economy has slid back into recession this quarter and economic activity is on the fall for quite some time now. A GDP fall of 0.4% has been registered for Spain in the second quarter.

At the centre of Spain’s economic backlash lies the property bubble burst that took place some time back leaving banks with a debt mountain to clear up. A 100 billion Euros bailout package has been asked by Spain from the Eurozone with plans for creating a single messed up bank

In the meantime borrowing costs have risen to unbearable levels for the economy and the international bond investors soon came to know that nothing short of a bailout is going to save Spain. The yield on Spanish 2 year bonds have fallen in August after attaining a peak of 6% in July.

Source: CNN

Photo: CNN


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