Unemployment In Spain Essay

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Unemployment is defined as a situation where in a country, citizens who had reach a working age is unable to get employed even though he/she is actively searching for jobs. Unemployment rate is usually used as a measure of the health of the country economy and is measure by the number of unemployed people, divided by the total population of the work force.

In general, a country with a lower unemployment rate has a better economy compared to a country with high unemployment rate. When a country faces high unemployment rate, it affects the overall economy, creating a cyclical problem. When people have lesser money to spend because of unemployment, companies suffer from decrease in revenue. Companies may than layoffs even more people or force
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However, the degree of unemployment in Spain is significantly high in respect to the other countries in the region at the same economic level. Unemployment rate varies from country to country due to difference in population however some level of unemployment will always be present. Most economists agree that the natural rate of unemployment in the economy of a country is around 4% to 6%. During the year 2010, the unemployment rate in Spain grow as high as 20% and 25% in 2012. Eventually it starts to gradually improve during the past few years from 20.7% in 2015 to 18.4% in 2016. Despite the improvement, Spain is still considered as a high unemployment rate country.

As mentioned previously that are multiples factors that causes high unemployment rate of a county. To understand why unemployment is so high in Spain we need to take a look at the situation of Spain in year 2010 to 2014. In year 2008, Spain was badly affected by the world financial crisis. Ever since then, the Spanish property market collapsed leading to a deep recession.

Not just Spain, other countries that are part of EU also faces the world financial crisis. However, country such as France who share similar labour market institutions and exhibited almost similar unemployment rates of 8% just before the crisis has an employment rate that risen to only 10% compared to Spain of

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