Unemployment to get worse in 2012

Mariano Rajoy
Rajoy in Congress yesterday

Prime Minister Mariano Rajoy has told parliament that he expects Spain’s “critical” unemployment to worsen in 2012.

Spain has the highest unemployment in the Euro zone with a jobless rate of 23% nationally, nearer to 30% in Andalucía, and Rajoy warned MP’s that “it could not be more serious”.

“We find ourselves in a critical situation,” he said, adding that “unfortunately, these figures will not get better in the short term. In fact, in 2012 they will get worse.”

His government is attempting to push labour market reforms which will be adopted following a cabinet meeting to be held this Friday (Feb 10th).

Across Spain the younger generation are suffering the most with 48.6% of 18-24 year olds looking for work.

“Unemployment touches all ages, but particularly the youth”, Rajoy told MP’s.

“One in two young people looking for work do not find any, and we are faced with an alarming phenomenon where a high number of Spanish graduates are emigrating,” he explained.

Rajoy said his government would need more time to meet the deficit objectives and to create employment adding that the labour market needs to be reformed to make it more flexible, and adapt to the changing economy.