The unemployment rate in Spain reached a record high of 25.02 percent in the third quarter, a level not seen since the fall of Franco’s regime in the mid-1970s, according to the latest official statistics released on Friday.
Furthermore, the local statistical office reported that the unemployment rate increased by 0.4 percentage points compared to the previous quarter, with 5.8 million people out of work.
The latest figures put additional pressure on the government in Madrid, which is struggling to rein in the budget deficit and meet the demands of the European Commission amid a severe recession that shows no signs of abating. Only Greece has a higher unemployment rate in the European Union.
Spain’s financing needs for this year are largely covered, and borrowing costs have significantly decreased since August when the European Central Bank (ECB) promised to start purchasing Spanish government bonds after the country officially requested assistance.
The austerity measures, worth more than 60 billion euros for the period up to 2014, are likely to further hinder growth and consequently lead to a greater loss of jobs.
The Spanish government forecasts a decline in economic activity of 1.5 percent for this year, which is expected to slow to 0.5 percent next year, according to current projections.
At the end of last year, the economy fell back into recession. The government predicts that 2013 will be the last year of recession, but notes that a drop in the unemployment rate below 24 percent should not be expected before 2014.
