Spain’s unemployment rate experienced a decline in the second quarter of 2023, indicating a potential recovery for the country’s growing economy. This positive trend can be attributed to the thriving tourism sector, which has been hiring more personnel.
According to data from the country’s statistics office INE, the unemployment rate decreased from 13.27% in the previous quarter to 11.60% in April to June. This figure is also lower than the 12.49% unemployment rate recorded during the same period last year. It surpasses the consensus forecast of 12.3% given by economists from FactSet.
In Spain, unemployment typically decreases during the summer months as the tourist season kicks into high gear. However, this particular improvement can be seen as a significant step towards a more stable job market.
During the second quarter, the number of unemployed individuals decreased by 365,300, bringing the total number to 2.763 million. Additionally, employment rose by 603,900, reaching a historic high of 21.057 million people, as reported by INE. The services sector alone hired 606,000 individuals during this period.
This news comes as a positive development for Prime Minister Pedro Sanchez, who recently led his centre-left Socialists party to a better-than-expected outcome in a general election. While the election results did not conclusively determine who will lead the government, this strong showing coupled with the country’s 0.6% economic growth in the first quarter serves as a boost for Sanchez and his party.
