MADRID, Spain (PNN) - April 23, 2015 - The economic recovery in Spain has gone from jobless to job loss. Spain shed 114,300 jobs in the first quarter of 2015.
In the first three months of the year, the economy shed 114,300 jobs. The result has been a slight increase in the unemployment rate from 23.7% to 23.78%, according to the Labor Force Survey (EPA) published by the National Employment Institute.
The rise in unemployment could have been higher if not for a significant decline in the labor force. This group has fallen by 127,400 people to 22.9 million.
As was the case in the previous quarter, the labor kick is a decline in private employment (143,500), since the public sector has grown to 29,200 jobs.
- Employed: 17.454 million
- Unemployed: 5.444 million
- Labor Force: 22.9 million
- Unemployment Rate: 23.78%
- Youth Unemployment: 50.1%
Those are horrific numbers. The unemployment rate would be higher except for a decline in the labor force coupled with public sector hiring, which may be an election ploy given there will be national elections later this year.
The only way Spain can grow and hit budget deficit targets is via numbers like these. In fact, I strongly suspect Spain will miss its budget deficit target because of public sector spending.
How long before Spanish citizens have had enough? The next national election may be telling.