Spain Hails Lowest Unemployment Rate In 16 Years
Official figures released this week show that the unemployment in Spain fell last year to its lowest level since the 2008 global financial crisis.
The jobless rate in the European Union’s fourth-largest economy at the end of 2024 was 10.61%, down from 11.76% for the previous year.
The figures released by the National Statistics Institute showed that some 468,100 jobs were added during the year bring a record total of 21.8 million in work, fueled by a boom in tourist related jobs.
A dynamic service sector slashed unemployment by 100,000 during 2024, a year in which the world’s second most-visited country received a record 94 million tourists.
The tourism sector represents around 13% of an economy which is clocking growth rates far outstripping its EU peers, providing vital political capital for the minority coalition government between the PSOE socialists and left-wing Sumar group.
Although the rate is falling it remains stubbornly high in comparison to other developed countries; indeed Spain has the highest unemployment rates compared to other OECD countries.
The government aims to bring it down to around 8% by 2027, which it says represents full employment in Spain.
The Bank of Spain has predicted growth of 3.1% for 2024, in contrast with the 0.8% forecast for the eurozone by the European Central Bank.
The 2008 financial crisis and the collapse of a housing market bubble triggered soaring unemployment that peaked at around 27% in early 2013.
Spain’s recovery then suffered the shock of the Covid-19 pandemic that drove joblessness above 16% before bouncing back with the return of international travel and labour reforms.
The government aims to bring it down to around 8% by 2027, which it says represents full employment in Spain.
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