Spain Unemployment Hits New High

Spanish unemployment rate has hit record levels, with nearly one quarter of the labour force unable to find work and young people fearing the worst. The unemployment rate rose in the second quarter to 24.63 per cent and a huge 53 per cent among the young, despite the start of the tourist season, official figures showed on Friday.

The unemployment rate rose from 24.4 per cent recorded in the first quarter - already the highest in the industrial world - as Spain entered its third straight quarter of economic contraction. Among those aged 16 to 24, the rate rose to a huge 53.27 per cent from 52.01 per cent the previous quarter, reflecting the ongoing impact of Spain's double-dip recession following the collapse of a construction boom in 2008.

The number of households in which all eligible members are unemployed rose by 9,300, reaching more than 1.73 million overall. The country is in its second recession in four years, hit hard by the bursting of the property bubble that threw millions out of work and badly affected the country's banks. Read more >>