Photo: Albert Gea / Reuters
The labor market of Spain — one of the most developed countries of Europe was on the verge of collapse. In the second quarter of this year, the unemployment rate in the country jumped by 15 percent and figures may get worse, reports Bloomberg. Among youth, unemployment rose by 40 percent.
The increase in the unemployment rate justified the imposition of harsh restrictive measures due to pandemic coronavirus. Officially the economic damage for the second quarter are not yet known, but , as predicted by the Agency, industrial production in the fourth economy of Europe could slip to 16 percent. The number of unemployed increased to 3.37 million people. More than million stopped work. During quarantine, they began to actively look for work, so technically they are not considered unemployed.
The economy is gradually recovering, but the efforts can be ineffective because of the new outbreaks COVID-19 in some regions. One of the engines of growth — tourism industry, but there are now difficulties. Spain is heavily dependent on travelers from the UK. Recently, the Prime Minister of the United Kingdom Boris Johnson urged to put on a two-week quarantine returning from Spain.
Analysts believe that this year the Spanish GDP will shrink by 10 percent, despite the fact that in Europe the average is 8 percent. It is not excluded that tens of thousands of small and medium enterprises in the country will not survive until the end of the year.
Not the best way the situation is developing in Germany, which is considered the main economy in the Eurozone. Unemployment there was the highest since 2015.
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