Figures for 2007 show that unemployment in Spain rose to 8.6% in the fourth quarter with 137,500 more people becoming jobless during those last three months. The total number of unemployed in Spain now stands at 1, 927,600 and this should provide plenty of ammo for the Partido Popular in the run-up to the general election on March 9th.
Unemployment and the general slowing down of the economy are certain to be major campaigning issues and the latest figures couldn’t have come at a much worse time for Prime Minister José Luis Rodriguez Zapatero. The rise is being blamed, at least in part, on the recent downturn in the construction industry. Stagnating property prices, higher interest rates and international cutbacks have all affected what was, basically, a credit-based expansion programme and this had led to a situation where less jobs are being created at a time when more people are entering the workforce.
During the second quarter of 2007, unemployment stood at 7.95%, the lowest figure since 1978. Some politicians, especially those currently in power and hoping to be re-elected in March, have said that the rise in unemployment was ‘expected’ and is only a ‘temporary’ upturn. Probably related to those who said Wall Street 1929 was ‘expected’ and was only a ‘minor hiccup’. What politician in his right mind (if such a thing exists) is going to say, especially just before an election, ‘oh my god, that’s an awful surprise’ and ‘it’s only going to get worse’?