Unemployment in Spain.

Unemployment is a big problem in Spain,

especially amongst the youth, but why? Let's take a look at the severity of the issue, and what Spain is doing to tackle it.

According to the Institute of National Statistics (INE), Spain's unemployment rate ranges from 9.6% to 23.1%. The hardest-hit areas being Extremadura and Andalucia, in the south of the country. That gives Spain a national average of 14.5% unemployment, a significant amount higher than that of Germany or the UK (between 3.5% - 5%), or France (between 8 - 11%)

The rise of unemployment in Spain can be traced back to the era of Franco reforms after the financial crash of the 1980s. For example, during Francoist Spain, trade union activism was banned and social welfare was lacking. Another example; nearly 2.7 million jobs in agriculture that were replaced by 1.1 million jobs in the public sector in 1972. Although Spain tried to recover during the 1990s, improvement stagnated and was made worse by the crash of 2008.

Expats and Digital Nomads

On the flip side, many expats and digital nomads live in Spain. Barcelona, in particular, is a sunny magnet for talents from all over the world. We met a few of them and inquired about what makes them live and work there. Mirela Iancu, a marketer, living in Barcelona since 2019, told us, "Barcelona is like a magnet. It has sun, a good vibe, and it is multicultural. There are so many startups funded by brilliant people who find inspiration here."

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Then we come to 2020.

This year has been a difficult one for lots of countries, and those, like Spain, who have been struggling with high unemployment rates, have been significantly impacted. The Covid-19 virus crisis has seen many economic structures deteriorate, and countries like Italy, Greece, and Spain, who rely heavily on tourism, are some of whom this pandemic has hit the most.

So who exactly has this level of unemployment impacted the most? Well, historically, the south of Spain has had the highest percentage of unemployment, and this trend has continued to date. Spain is an unfortunate example of how over years of political reforms can create a strong but clear north/south, rich/poor divide. To compare, the GDP per capita in Spain's richest county, the Basque Country is €30,000, and the per capita in Spain's poorest county is €18,000.

Another large population of Spain that has been hit hard by unemployment is the youth. Around 57% of people between the ages of 15 and 24 are currently unemployed, and with the changes to the economy during the Covid-19 pandemic, that number is estimated to grow. Young people in Spain generally have less work experience than older workers, which of course is something lots of countries face but include high rates of student dropouts, and fewer contracts available, you can see how the situation has escalated.

Unemployment is not just an economic issue, but I phycological one too. Spain experiences some of the highest rates of these issues in Europe, and self-esteem, juvenile delinquency, and addiction are side effects that the country is dealing with as well. As we move forward through 2020, and look to the future, governments around the world, just like Spain, will have to address these issues and find new solutions.