Spain's jobless rate explodes to 17.%

The unemployment rate in Spain hit 17.4% at the end of March, according to latest government figures. The unemployment rate in Spain has doubled over the past 12 months, with two million people losing their job, bringing the total number out of work in Spain to just over 4,000,000. 

Spain’s economy collapsed over the past two years, after enjoying over a decade of solid growth and economic success.

The central bank early this month forecast the rate would reach 17.1 percent in 2009 and 19.4 percent in 2010.

Greg Schellhammer, author of the e-book “Survive the Crisis in Spain” notes that at the current rate of unemployment increase, “Spain will reach 30% by summer 2010” and if the economic downward spiral continues to worsen as it has over the past months then, “by summer [this year] we will see 25% unemployment in Spain”. “Why? It’s simple, up to now every estimate and forecast predicted by both official government figures and international analysts have been beaten, if we look at the trend, we see we are heading into a dark hole”.

The International Monetary Fund on Wednesday said Spain will see full two years of recession, with the economy contracting 3.0 percent this year and 0.6 percent in 2010 and unemployment hitting 19.3 percent next year.

Image by pe5pe under Creative Commons.