Unemployment rises as economy slows

6th December 2007, Comments 0 comments

The number of people out of work in Spain in November climbed for the second month in a row as the domestic economy lost some of its dynamism.

5 December 2007

MADRID – The number of people out of work in Spain in November climbed for the second month in a row as the domestic economy lost some of its dynamism.

Jobless claims for last month rose by 45,896, or 2.2 percent, to 2.09 million, the Labour Ministry said Tuesday.

Economy Minister Pedro Solbes said the figures were "consistent" with a "slight slowdown" in the economy. The Bank of Spain has estimated GDP grew at an annual rate of 3.7 percent in the third quarter down from 4.0 percent in the second.

A massive property boom, which has underpinned the overall economy, is showing clear signs of petering out.

The biggest increase in unemployment in November was in the construction sector, where the number of jobless was up 4.6 percent. The number of people out of work in the services sector - the country's biggest employer - climbed 2.4 percent. The number of male unemployed was up 3.8 percent, while 1.1 percent more women last month were jobless.

According to figures released Monday by the European Union's statistics office Eurostat, the unemployment rate surprisingly fell in the euro zone in October to 7.2 percent from 7.3 percent the previous month. The jobless rate in Spain dropped to 8.1 percent from 8.2 percent, but rose in Portugal to 8.5 percent from 8.3 percent.

[Copyright EL PAÍS, SL./ Adrián Soto 2007]

Subject: Spanish news

0 Comments To This Article