Why is unemployment so high in Spain?

One of the main reasons for increasing unemployment in Spain is due to the country's tight labour market regulations, which are also seen in the housing market as well as the medicine market.

Why is unemployment in Europe so high?

In addition to oil prices, interest rates, taxes, and unemployment benefits, which have tended to raise the long-run unemployment rate, there are important dynamic features of unemployment—such as inertia and overshooting—that have contributed significantly to the European unemployment problem over the past 25 years.

Which EU country has the highest unemployment?

Among European Union countries in October 2023, Spain had the highest unemployment rate at 12 percent, followed by Greece at 9.6 percent.

How is the job situation in Spain?

The long-term unemployment rate and the share of temporary contracts are high, further increasing vulnerabilities associated with job security. Spain also has the fourth highest share of workers experiencing job strain among OECD countries. The performance of the labour market in terms of inclusiveness is mixed.

Is youth unemployment a problem in Spain?

Youth unemployment rate in Spain in 2022

In 2022, the youth unemployment rate in Spain decreased by five percentage points (-14.37 percent) since 2021. Nevertheless, the last two years recorded a significant higher youth unemployment rate than the preceding years.

Five reasons for Spain's high unemployment rate

How bad is unemployment in Spain?

Spain was the European country with the highest unemployment rate in July 2023, with nearly 12 percent of the labor force out of work. This figure is considerably higher than that of the rest of the European Union, which had an average unemployment rate of 6.4 as of the same period.

Who is most affected by unemployment in Spain?

Youth unemployment

To this day, young people between the ages of 16 and 24 years are the age group that hast the most difficulty finding a job in Spain.

Why is there a lack of jobs in Spain?

In Spain, we work more hours than the most developed European countries, and we do so with less productivity.” This expert believes that these extensions of the day prevent many workers from accessing the labor market. On top of this, high amounts of overtime go unpaid, while the work is often strenuous.

Why is it hard to get a job in Spain?

Finding a job in Spain as an American can be difficult due to their high unemployment rate, but by looking in the right places and sectors, finding a job vacancy can be a possibility. Finding work in Spain is a great choice for those looking to expand their experiences and gain new skills.

Why does Spain have a low employment rate?

Spain continues to deal with productivity challenges

Another key reason for Spain consistently seeing higher unemployment than the rest of Europe is due to the country continuing to face low productivity, even though most employees work longer hours than the rest of Europe.

Which country in Europe is most employed?

Employment rates in five EU Member States surpassed 81 % - the Netherlands leading with 82.9 %, followed by Sweden (82.2 %), Estonia (81.9 %), Czechia (81.3 %), and Malta (81.1 %).

Which country has lowest unemployment rate in the world?

Which countries in Europe work the most?

People in Balkan countries work the longest weeks

Greece and Romania were followed by Poland (39.5 hours), Bulgaria (39.2 hours) and North Macedonia (39 hours). This all suggests that people in Balkan countries have the longest average working hours per week.

Is Spain's economy good or bad?

The economy of Spain is a highly developed social market economy. It's the world's 15th largest by nominal GDP and the sixth-largest in Europe. Spain is a member of the European Union and the eurozone, as well as the Organization for Economic Co-operation and Development and the World Trade Organization.

Which European country has lowest unemployment?

The Faroes have the lowest unemployment rate in Europe. The rate for 2023 matches pre-pandemic levels. Unemployment for Faroese women is exceptionally low.

Why Greece has high unemployment?

The Greek economy is over-regulated and hence hurts investment in the country which hurts youth employment, and also has a lumbering public sector which strains government finances.

What is the most needed job in Spain?

What is the most common occupation in Spain?

In 2021, 4.06 percent of the workforce in Spain were employed in agriculture, 20.19 percent in industry and 75.75 percent in services.

Do jobs in Spain pay well?

According to Statista, the average salary in Spain is €29,113 per year or €2,426 a month. However, depending on various factors such as experience, location, and industry, this figure can vary.

Why are so many people leaving Spain?

The new residency rules, uncertainty around healthcare, tightening financial situations, and job market difficulties are just a few of the problems they face. These issues have transformed what was once an ideal expat experience into a situation filled with red tape and cultural hurdles.

What percent of Spain is in poverty?

A fifth of the population is below the poverty threshold, exactly 19.9%. It is worth highlighting that women have a greater risk of being poor than men, as the poverty rate for men is 19%, almost two points lower than the rate for women, which reaches 20.8%.

Why is income inequality so high in Spain?

Although social benefits as a whole do not affect the inter-country income inequality gap, their composition is different in each case: Spain devotes much more resources to unemployment, and less to protect children and disable people, or to promote affordable housing.

Why does Spain have such high youth unemployment?

This had the additional effect of not only leaving young people out of work; but also leaving them without some of the social benefits their jobs provided. Other causes of the high rate of youth unemployment include leaving school early and the mismatch of supply and demand between work and education level.

How is Spain's economy compared to the United States?

Comparison In 2021, United States ranked 10 in the Economic Complexity Index (ECI 1.46), and 2 in total exports ($1.63T). That same year, Spain ranked 35 in the Economic Complexity Index (ECI 0.78), and 16 in total exports ($372B).

What is Spain doing to reduce unemployment?

Secondly, in the case of Spain the labour reform approved in 2022 has reduced the high temporary rate of the labour market by restricting temporary contracts, while at the same time increasing the flexibility available in permanent contracts, resulting in fewer people entering and leaving unemployment.