Unemployment rate in Spain falls

Spain's unemployment rate has fallen

A rare ray of light shone on Spain’s economy last week when the country’s labour minister announced that the number of people registered as unemployed fell in December last year.

In total, an additional 41,023 people found employment in Spain at the tail end of 2012, reducing the jobless figure by 0.8 per cent. It may only be a small dent in the 4.85 million unemployed figure, but it is an encouraging step in the right direction.

As a whole, 2012 saw Spain’s jobless ranks swell by 10 per cent, and the situation is still disconcerting throughout many parts of the country.

However, Spain’s Labour Ministry revealed that last month was the best performing December since the existing records began back in 1996. Young workers, women and first-time job seekers had done particularly well, the Ministry said.

“I think 2013 will be better than 2012,” said Economy Minister Luis de Guindos. “The groundwork is being laid for us to begin to see positive employment growth rates in the fourth quarter of this year.”

External observers were a little more cautious, but were keen to offer words of encouragement.

“It is still a very dire situation as far as unemployment is concerned,” said Deutsche Bank’s economist Gilles Moec. “The corporate sector in Spain has made tremendous efforts in boosting productivity.” Such efforts have had a positive knock-on effect on employment, which has helped strengthen Spain’s economy and augmented its export sector.

Encouraging news to begin 2013; let’s hope for more of the same as the year progresses.