Tourism Boosted Hiring in Spain
The number of officially jobseekers (not seasonally adjusted) in Spain dropped significantly by 127 248 people or 2.6% to 4.76 million in June, the Labor Ministry said Tuesday. It was the fourth straight month of declining job claimants and the steepest in one month since comparable statistics began in 1997. Spain’s State Secretary for employment said:
“Never has registered unemployment fallen so much in a single month”
Note that corrected for seasonal variations, the number of unemployed people rose by 996 to 4.88 million. Yet, government and financial markets used to focus on the raw figures.
These data bolster government claims that the Spanish growth is finally turning the corner.
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Spain’s unemployment dropped in June at the start of the peak tourism season, with the Prime Minister Mariano Rajoy predicting the trend will continue as the worst economic slump in the country’s democratic history comes to an end.
The number of people registering for jobless benefits fell by 127,248 from May to 4.76 million, the Labor Ministry in Madrid said today in an e-mailed statement. That is the sharpest decline on record for a month of June. Economists had predicted a decline of 100,000, according to the median of 5 forecasts in a Bloomberg News survey.
Spain, with an unemployment rate of 27 percent, is home to almost a third of all the people out of work in the euro region.
Economy Minister Luis de Guindos last month said Spain will see a durable improvement in employment as rising exports help haul the euro-area’s fourth-largest economy out of its second recession since 2008 in the three months through September. The Bank of Spain last week said indicators suggest the recession is abating after seven straight quarters of contraction. Exports rose to a record last year, while the country in March posted its first trade surplus since at least 1971.
Still, the nation’s current account swung back into a deficit in April, and households’ wage income fell 8.5 percent in the last quarter from a year earlier after a labor-rules overhaul helped companies to cut payrolls.