Spectacular increase in unemployment in October

17 November 2008

192,658 individuals registered for unemployment in October. The current rate of unemployment is around 15% and experts predict it will be about 17% in two years.

The Spanish job market is not isolated from the current worldwide economic situation. While it is true that the main sector affected by growing unemployment is construction, due to the serious recession that the real estate sector is undergoing, and the service sector, as a consequence of the end of the tourist season; this economic slowdown is creating unemployment levels which haven’t been seen since April of 1996, when Felipe González left office. This is reflected in the October data: 192,658 more unemployed than in September of this year.

As regards registration on the Social Security rolls, in October there was an average of 18.9 million contributors, which means a loss of almost 102,000 for the month, and a 2.34% decrease for the year. The current number of contributors to Social Security is 18,918,473 workers. This decrease in contributors also significantly reduces income for the only public administration that still enjoys a surplus.

Youth have been the group worst affected by unemployment; with a 12.25% increase in unemployment for those under 25, as opposed to the 6.6% increase for workers over 25. Likewise, this growing number of unemployed in our labour market has other repercussions such as the increase in temporary contracts and an increase in unemployment benefit expenses.

For further information, please contact Ana Gómez Hernánez: agomez@mmmm.es