Spain's unemployment lowest in 29 years

27th July 2007, Comments 0 comments

Spain's second-quarter unemployment rate fell to 7.95 percent.

27 July 2007

MADRID - Spain's second-quarter unemployment rate fell to 7.95 percent, its lowest rate in 29 years as job creation remained strong despite slowing construction growth.

Data published on Friday by the National Statistics Institute INE showed 202,000 people entered the Spanish workforce in the second quarter.

The country's jobless rate for the first quarter was 8.47 percent.

INE said Spain created 674,200 jobs in the 12 months to June 30, up from 669,100 jobs created in the 12 months to March 30.

Spanish officials have said that, although job creation has begun to slow in the country's booming construction industry, the slowdown has been compensated for by a pickup in job creation in the industrial and service sectors.

Spain has been one of Europe's main motors of job creation in the euro zone since 1996, creating more than 600,000 jobs a year and dramatically reducing one of the region's highest unemployment rates.

Though Spain's unemployment rate remains slightly above euro-zone and European Union averages, it had reached nearly 25 percent in 1994.

The INE said Spain's percentage of temporary contracts, one of the highest in Europe, fell to 31.85 percent from 31.95 percent.

The Spanish government has offered companies a package of incentives to convert temporary contacts into indefinite ones.

(Copyright AP with Expatica)

Subject: Spanish News


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