The Spanish unemployment rate just keeps on going down.
Youth unemployment in particular saw a marked decrease which has reduced crime rates.
Back to the old days
Spain is almost back to 2009, in terms of the number of people in work.
That’s partly thanks to a reviving economy (GDP is now past its pre-financial crisis peak) but also the decision to bailout the banking sector in 2012. You’ve also got to consider the big stimulus package the European Central Bank (ECB) implemented, which has increased liquidity and reduced anxiety over the Eurozone’s fragility.
And a bumper tourism season helped people get back to work.
Whilst Spanish unemployment is still high, economic growth is set to lead the Eurozone pack, with almost 1% quarterly growth predicted.
And the manufacturing sector is predicted to continue its hiring spree.
But is government too slow?
When the country desperately needs economic reforms to support and safeguard the recovery, Parliament has so far passed only 4 laws this year.
Political deadlock is one of the major downsides to a minority government.
If you compare political activity to 2012 when the government held a clear majority, Parliament passed 4 times as many laws.
Clearly Spain’s political classes need to build consensus in order to ensure that growth isn’t jeopardised by political inertia and tribalism.