Spanish Government promises 600,000 jobs in two years

With high youth unemployment, Spain’s leaders are turning their attention to boosting the job market

Prime Minister Mariano Rajoy’s government has upgraded Spain’s economic outlook, bullishly adding that it will create 600,000 new jobs over the next two years.

Spain’s slow and steady recovery from a double dip recession has instilled a drip-drip of confidence in the country in 2014, with the official growth target of 0.7 per cent revised upwards to 1.2 per cent. For 2015, the government expects GDP to grow by 1.8 per cent, up from the previous forecast of 1.2 per cent…

However, it is Spain’s unemployment rate that requires the most work. Having lost close to 1.2 million jobs since the beginning of the first recession in 2008, the Spanish government will turn its attention to job creation over the next 24 months.

Spain’s leading industries – the car industry and tourism – are expected to enjoy the sharpest upturn in fortunes. This summer, for example, the Costa del Sol expects to attract 5.6 million tourists – which is an eight per cent increase on last year, according to figures released by Spain’s tourism board.

With a strong summer season under its belt, Spain can head into the autumn period with renewed confidence that will hopefully carry over until next year – an election year. Prime Minister Rajoy is eyeing re-election, and nothing wins votes more than solid job creation.

Whether such talk turns into concrete action remains to be seen, but the signs are positive that Spain’s long-suffering economy has begun to fix – slowly – its wounds.