Spain's Unemployment Rate Rises Full Percentage Point to Record 27.2%; Unemployment Tops 6.2 Million

Spain's budget deficits are out of control, home prices are still falling, GDP is down 2% annualized in the first quarter, production is down, the unemployment rate soared a full percentage point to 27.16%, and a record 6.2 million are out of work.

Here are some stats from Spain's National Statistics Office as noted in the Financial Times.

• Almost 240,000 people lost their jobs in the first three months of the year.
• The overall number of jobless is 6.2 million.
• The unemployment rate rose by more than 1 point to 27.16%
• 2 million out of 17.4 million Spanish households are without a single person holding a job.
• Job losses were particularly heavy in the services sector, but also in industry and farming.
• Construction has shed more than 1.6 million jobs since 2008 as a result of the bursting of Spain’s housing bubble.

These numbers are an indication of a freefall, not a bottom. Yet, Rajoy says the Spanish economy has bottomed and Spain will return to growth this year. Such talk is ridiculous.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
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