Unemployment In Spain

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Spain, is a country that the world knows as a hustling part of Europe, and of course for its ham. Well, unbeknownst to me Spain has endured interesting macroeconomic situations that have affected different parts of its society. Being part of the European Union is unique in the way in that it is often compared to sibling countries such as France and Germany, but also adds another dimension to social and economic problems the country faces because they often are compared to those countries as well. It is one of the world’s largest economy coming in at 13th place, but even so, it has struggled with coming out of the world recession and is still making amends to ensure proper growth. As one of the last to emerge from the world global recession…show more content…
Below is a graph of Spain’s unemployment rates, which has clearly taken a roller coaster of ups and downs in the past 18 years. The deflation rate, like most statistics of Spain’s economy, can be almost split up in pre and post real estate bubble pop in 2008. As shown, pre 2008 market crash Spain’s unemployment rate started much higher in comparison to the United States shown in the graph in addition to Spain. Spain was making steady progress in reducing the unemployment rates and got it down to almost 7.5%, but come 2007 / 2008 it begin to go right back up quickly exceeding the previous highs. Although, it is fascinating the ways in which Spain has always had well above average unemployment rates, while also being able to be one of the largest economies in the world at the same time. As of now, Spain is decreasing unemployment percentage and is now back to its previous rate in 2008. Current problems of unemployment are a result of the housing bubble, Spain’s labor laws, and also education there. Construction and real estate accounted for around 13% of the labor force, and to put it into perspective the housing crisis of 2008 in the United States, there, in Spain, housing accounted for even more of employment and hurt Spaniards even more so. Spain’s labor laws are regulating the sector too much, making it hard to let go of full time employees,…show more content…
Its GDP is 1.2 trillion compared to its sibling countries of Italy and France at respectively 1.9 and 2.5 trillion each. So, not far behind them, but Spain has also been facing many problems in recent years. To still have a somewhat high GDP after being the last country in the E.U. to return from the recession beginning in 2008 is somewhat impressive. But, like before how Catalan had a minor effect on the stability of prices in Spain, it has a major effect on its growth. The ways in which Spain will either fall hard or continue to grow lies in the hands of Catalan because they have without thought “put all their eggs in one basket” becoming overly dependent on Catalan. The effects of Catalan becoming dependent from Spain would hit the GDP hard, decreasing it by an estimated 13%. Although only 15% of the population of spain liv in Catalan together they create one fifth of the GDP of Spain. There small size surely would not suggest this. Catalonia as a single economy is thriving, with lower unemployment rates than the overall high one in Spain, in addition to smaller inequality gap in workers paychecks. Catalan is also an international hub for Spain, housing some of Spain's best universities and bringing in 25% of the investments for Spain as a country. Overall Spain’s growth is all right even with the many setbacks

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