Unemployment in Spain reaches new heights as tourism trade slows

The economic situation in Spain has triggered widespread protests

Unemployment in debt-ridden Spain rose by 1.7% in September, according figures released by the country’s Labour Ministry on Tuesday.

The increase in unemployment last month follows an increase in August, with 4.7 million Spaniards currently out of work.

Analysts attribute the increase to redundancies in the service sector as the steady flow of summer tourists slows, with seasonal jobs being terminated in the winter months.

“There is a certain slowing down in the rate of increase in unemployment but the negative side is that jobs are still disappearing,” Estefania Ponte, head of economy at trading house Cortal Consors, told Reuters.

Ponte said that today’s monthly figures suggested that the unemployment rate in Spain will mostly exceed 25% in the third quarter.

Unemployment in Spain, one of Europe’s largest economies, is the highest in the European Union. Analysts are also expecting that recent floods due to torrential rains could further dent tourism activity.

 

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