IESE and Adecco Report Deteriorating Labor Market in Spain

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(CC) il Quoquo/Flickr

(CC) il Quoquo/Flickr

In June there were 1,386,500 young people working in Spain, just over half the total figure in 1976. This is largely due to the ageing population. However, there can be no denying that the situation has been severely exacerbated by the recent sharp rise in unemployment, which now affects as much as 38.1% of those under 25 years (whereas 33 years ago unemployment affected only 10% of Spanish youth). By December, as many as 42.1% of young people may well be without work – representing a massive 13 percentage-point rise on last year’s figure. No less ominous is the fact that by the end of this year no fewer than 18,670,100 people will be employed in Spain, the lowest number since March 2005.

This stark data is published in Adecco’s second quarter indicator of employment trends in Spain’s autonomous regions, developed by researchers for IESE-IRCO. The indicator shows a third consecutive fall in employment – and even more worryingly, it seems that the increases in unemployment are accelerating.

Recent developments in the Spanish labor point to a consolidation of the dominant trends of previous quarters. These include a rapid destruction of jobs, a sharp increase in the unemployment rate (not only in terms of total unemployment but also in unemployment among women and youth), and rapidly-advancing labor productivity – though the gains in productivity are only helping to off the declines experienced in previous years.

You can access this report from the Adecco website.