Unemployment at new high

Unemployment in Spain as a whole has hit a new high of 25% according to the latest figures announced by the National Institute of Statistics, with 52% of people aged between 16 years and 24 years now without a job and little prospect of finding one.

In the past five years, unemployment has risen from 8% to the current 25% and is likely to rise even further. In some regions, such as Andalucia, the unemployment rates are far higher.

Although the government is increasing taxes and cutting services to reduce its deficit and borrowing requirements, such measures do not encourage consumer spending and as a result the recession is just deepening.

Spain is still resisting a full bailout but most people believe a request for funds is inevitable, just a matter of time.

With rising benefits and lower consumer spending, the government finds itself paying out more in benefits than it receives in revenues, hardly a recipe for success.

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