Record rise in Spanish monthly unemployment in 30 years

5th August 2008, Comments 0 comments

Number of people seeking employment in Spain leaped to 2.43 million in July following a 1.5-percent surge in job claims.

5 August 2008

MADRID - The number of people looking for work in Spain soared to 2.43 million in July following a 1.5-percent surge in job claims - the biggest month-on-month leap in unemployment since the country returned to democracy 30 years ago.

The record-breaking jobless figures were due largely to a dramatic increase in layoffs in the construction industry as Spain's housing sector contracts following a decade-long boom.

Rising unemployment, falling house prices and surging inflation has started to hit families hard, though Economy Minister Pedro Solbes has suggested that worse could be to come.

"The fourth quarter could present us with difficulties, depending how things develop," he said on national radio Monday, refusing, for the first time, to rule out the possibility that Spain could slip into recession.

[El Pais / Expatica]

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