MALAGA GAZETTE

Tuesday, August 03, 2010

Spain's unemployment rate rose to a 13-year high of 20.09 percent


Tuesday, August 03, 2010 |

Spain's unemployment rate rose to a 13-year high of 20.09 percent in the second quarter, the government said Friday, as the job market lagged behind an economy that has barely managed to break out of recession.

Though the rate increased from 20.05 percent in the first three months of the year, the National Statistics Institute said the number of people working actually increased, due in part to companies gearing up for the summer tourism season.

Still, the overall unemployment rate rose to its highest level since 1997 because of a large increase in the work force.

Spain crawled out of recession in the first quarter of this year after nearly two years of economic contraction and has been a focus of concern in recent months, as investors fretted that its bloated deficit and troubled banking sector could necessitate a Greek-style bailout.

The government has imposed an austerity program of euro15 billion in spending cuts but warned this will slow down the country's recovery.


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