Spanish unemployment rate rises to new eurozone record of 21.3 percent

Image via WikipediaSpain’s unemployment rate jumped in the first quarter to 21.3 percent, a eurozone record and the country’s highest since 1997, with over 4.9 million people out of work, the government said Friday.

Joblessness during the January-March period jumped 1 percentage point from 20.3 percent at the end of 2010, and adds pressure on Spain as it tries to recover from nearly two years of recession and convince investors that it can handle its heavy debt load.

“This data is very negative and grave,” said Labor Minister Valeriano Gomez.

The country is struggling to shift away from dependence on the construction sector, which supported growth for years until the financial crisis popped the Spain’s real estate bubble, as well as make the economy more competitive and reduce national debt. More...