Reuters - Video

Edition: US | UK | IN | CN | JP

Finance Videos

Spain jobs rise not enough

Tuesday, July 03, 2012 - 01:45

July 02 - June's figures showed almost 100,000 were back in work in Spain, but the economy minister says they're not out of the woods yet as employers have taken on more staff for the tourist season. Joanne Nicholson reports

▲ Hide Transcript

View Transcript

The figures say the queues at Spain's employment offices should be going down. Unemployment fell by 2.1 percent in June, meaning close to a hundred thousand people are back in work. And it was the third month in a row that the rate dropped in the country with the worst rate of unemployment in the euro zone. It all sounds promising, you might say, but June is traditionally the month where more workers are hired to cover the busy tourist season. Spain's economy minister, Luis de Guindos, says it's not time to breathe a sigh of relief yet: (SOUNDBITE) (Spanish) SPANISH ECONOMY MINISTER LUIS DE GUINDOS SAYING: "The last thing I will do as economy minister is create false expectations, I know we are in a complicated situation and, regarding the figures, let's hope they're consolidated. What we have to do is keep working so this month's figure becomes consolidated." The good news doesn't seem to have many people convinced things are improving in Spain as it's mainly the service sector that's taken on the bulk of new work. (SOUNDBITE) (Spanish) UNEMPLOYED JOSEFINA, SAYING: "It is depressing. I am not an economist, but what I see around me is that shops are closing and people I know are all jobless. That is, people who used to have a job are losing it now." Spain's austerity measures are unpopular - many believe they're hindering any chance of growth. The government says it's committed to slashing the deficit by more than 3 percent to 5.8 percent of GDP. But if the economy doesn't pick up soon that's looking like unlikely. To make up the shortfall Madrid says it may further ramp up taxes on energy, property and the consumer - all options which will hit Spaniards where it's already hurting. Joanne Nicholson, Reuters

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Spain jobs rise not enough

Tuesday, July 03, 2012 - 01:45