Spain to release January unemployment rate
Spain will today announce its January unemployment rate.
The nation has taken a hard hit from the pandemic, with its GDP falling 22% below pre-crisis levels. The decline in tourism was a serious blow to the economy, as more than 12% of its GDP came from tourism in 2018 and 2019. Spain has historically suffered from high unemployment: since the economic crisis of the 1980s, unemployment has hovered above 8%. By the end of 2020, it jumped to an average of 15.5% from 14.1% in 2019.
Through temporary lay-off schemes (ERTE), Madrid has thus far protected 800,000 workers by paying 70% of their salary and prohibiting companies from firing people, particularly in the tourism and service sectors.
Expect the labour market to continue to be the weakest point of the economy. The EU Recovery Funds may help Spain stimulate the job market, aiming to create 800,000 jobs over the next three years. In the long-term, successful allocation of funds and ERTE’s expansion could help Madrid push a return to its pre-pandemic unemployment rate.
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