Spain jobless numbers rise again as seasonal work wanes

Spain's service industry shedded jobs in September, but the news was actually encouraging

In a not-wholly-unexpected turn of events, unemployment in Spain has risen for the first time in seven months as summer seasonal work dries up.

The number of registered jobless in Spain increased to 4.7 million at the end of September, a rise of 0.5 per cent as 25,572 individuals lost their jobs.

These statistics, from the Labour Ministry, revealed that the construction sector and service sector were worst hit, as the end of the summer season signalled the traditional shedding of jobs in these industries…

However, despite the potential for gloom, Prime Minister Mariano Rajoy actually hailed the news as “the best jobless data for September in many years.”

This was not just political spin: September in Spain is always a tough month for job figures as the millions of tourists head home, hotels downsize their staff and bars and restaurants experience a sharp fall in custom. Yet the 0.5 per cent rise in unemployment is actually a rather small one, as confirmed by Citi economist José Luis Martínez.

“The figures are better than expected,” said the Madrid-based analyst. “Even so, this continues to be a case of consolidation rather than a stable improvement in the labour market.”

For a more accurate guide of how the Spanish economy is performing, the third quarter statistics from the INE will be highly anticipated by economists.

In July, figures from the second quarter showed that unemployment actually fell for the first time in two years, when the oft-quoted jobless figure of 27 per cent fell to 26.3 per cent. Nothing to crow about of course, but a sure sign that the economy is finally, after many years in the doldrums, starting to recover.