Spain young jobless rate hits 55%

Written By Unknown on Kamis, 24 Januari 2013 | 19.15

24 January 2013 Last updated at 06:14 ET

Spain's unemployment rate has hit a modern day record, with joblessness among young people topping 55%.

Official data showed that the jobless rate in the last three months of 2012 rose 1% to 26%, or 5.97 million people.

The figure, the highest since the mid-1970s, follows Spain's prolonged recession and deep spending cuts.

The impact has been acute for 16 to 24-year-olds, who saw the rate in the last quarter of 2012 surge to 55.13% from 52.34% in the previous three months.

Spain's economy sank into recession after its property crash left millions of low-skilled workers without a job, and general economic decline eroded business and consumer confidence.

"We haven't seen the bottom yet and employment will continue falling in the first quarter," said Jose Luis Martinez, strategist at investment bank Citigroup.

The figures, from the National Statistics Institute, mean Spain's jobless rate is twice the European Union average.

The unemployment numbers will be a blow for Prime Minister Mariano Rajoy's government, which was last year forecasting a jobless rate of 24.6% by the end of 2012.

When Mr Rajoy took office in late 2011 there were 5.27 million people unemployed in Spain.


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