Spain’s jobless almost 5 million and no prospects of a rebound in near future
Spain's jobless grew to a new record in November, official data showed Tuesday. The number of people registered as unemployed grew by 74.296 or 1.5% to 4.91 million in November from the previous month, the Labour Ministry said on Tuesday.
The figure was up 11% from a year earlier. It was the highest number of job seekers recorded in Spain since existing records began in 1996.
The Euro zone's fourth largest economy has been shrinking for 15 months and the government is expecting the recession to carry on throughout 2013 before releasing its grip in 2014.
A broader, quarterly household survey by the National Statistics Institute provides the official unemployment rate, which hit 25% in the third quarter for the first time in modern Spanish history.
President Mariano Rajoy's conservative government is forecasting an end-2012 unemployment rate of 24.6% with a decline to 23.3% in 2013.
But the growing queue of job seekers makes that forecast look increasingly optimistic, especially as the government raises taxes and slashes spending to curb the public deficit.
A Bank of Spain report last week said scarce available data pointed to shrinking economic output in the final months of 2012, noting further intense falls in construction investment.
In Spain the government is anticipating an economic slump of 1.5% this year. Its forecast of a 0.5% contraction in 2013 is widely viewed as highly optimistic, however. The European Commission, for example, saying it expects Spanish output to tumble 1.4% next year.
On Monday Spain formally requested the disbursement of 39.5 billion Euros of European funds to recapitalize the crippled banking sector. The money for the four nationalized banks, Bankea, Catalunya Banc, NCG Banco and Banco de Valencia and 2.5 billion euros for the so-called bad bank should be paid to the state's banking fund FROB around December 12, it added.