Spanish Job Growth Growing To Pre-Crisis Levels
Spain News
Published: 16 July 2018 09:34 CET
Updated: 16 July 2018 11:34 CET
In 2019, Spain is predicted to return to a pre-crisis level of unemployment. Recently published figures for 2018 show that the unemployment rate currently stands at 15.8%. To reach pre-crisis levels, Spain will have to attain an unemployment rate of around 8%. Spanish bank, BBVA, predicts Spain will reach 8% by next year if the pace remains the same.
BBVA think this is especially noteworthy as 86% of jobs that were lost during the crisis years from 2008 have since been recovered. In 2015, unemployment sky-rocketed to 27% and has been steadily declining. However, the recent job growth rate has increased, meaning pre-crisis levels are viable within the next 12 months.
As well as the optimistic forecast, the BBVA research group also released a cautious estimate, which puts job growth in 2018 at 3% and 2.5% in 2019. As well as measuring job growth, the research group also analysed inequality. They found that 80% of inequality cases relate to unemployment. The group suggests that for higher living standards in Spain, inclusion and job creation are essential.
Despite considerable improvements in job growth, some trade unions claim that the crisis is still affecting the job market as many employment contracts are temporary. UGT claim that just 4% of contracts issued in December were full-time or long-term employment opportunities. In fact, the labour ministry suggests that temporary contracts are on the rise, with a 12.6% increase to 19.6 million temporary contracts that were issued in 2017 compared to the previous year.
Image courtesy of Hdepot [CC BY-SA 3.0 ], from Wikimedia Commons
