MercoPress. South Atlantic News Agency

Unemployment up is Spain: almost 3 million jobless

The number of people filing for jobless benefits in Spain soared to almost 3 million following a 6% rise in unemployment during November. The Labour Ministry said Tuesday that an additional 171,243 people signed on for unemployment benefits last month, bringing the total to 2.99 million.

The increase was nevertheless somewhat slower than the 7.3% increase registered in October, but compared to November 2007 the number of unemployed jumped 47%. Services (9.5%), construction (8.4%), manufacturing (6.5%) and agriculture reported the highest increases during November. "Even though we're still going through a period of great difficulty, the November figure reflects a slowing down in the rise in jobless claims from the previous month," Employment Secretary Maravillas Rojo said. "I'm convinced the recent measures taken by the government will improve the unemployment situation." The Spanish government last Thursday unveiled a 11 billion Euro stimulus package for public works and the ailing auto industry. Other recent measures include a loosening up of credit for banks and rewards for businesses who hire people supporting families. Spain, one of Europe's fastest-growing economies over the last decade, is experiencing a sharp downturn because of the international financial crisis, which has exacerbated a collapse in its key construction industry. In the second quarter of 2007 unemployment in Spain was 7.95% (1.76 million people), the minimum ever in years, but on the third quarter of this year the index had jumped to 11.33%, compared to the average 7.7% of the Euro zone, according to Eurostat. The European Commission estimates unemployment in Spain will reach 13.8% in 2009, but the IMF is more pessimistic, 14.7%.