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Spain's jobless rate falls; challenges remain

Friday, August 02, 2013 - 01:19

August 2 - The number of people without a job in Spain has fallen for the fifth straight month, boosted by a strong tourist season. But as Hayley Platt reports, an unemployment rate of 26 per cent means life is still tough for those seeking work.

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It's only a tiny amount but at least it's a move in the right direction. Spanish unemployment figures fell 1.4 percent in July to 4.7 million. It's the fifth consecutive fall in as many months. But Citi's Valentin Marinov warned against being too optimistic. SOUNDBITE: Valentin Marinov, Head of G10 FX strategy, Citi, saying (English): "The Spanish government was quite clear in its expectation that the recovery will gain momentum in the second half of the year. They're expecting growth to actually return next year. All that said it may be a bit premature to presume we will see growth and employment returning anytime soon." An influx of tourists during its busiest month helped boost the Spanish jobs market. But it's still plagued by record levels of unemployment following the collapse of the country's property market in 2008. Isabel Garcia lost her job in May. (SOUNDBITE) (Spanish) ISABEL GARCIA, JOBLESS, SAYING: "They want young people with no experience. Those who are older with more experience are not wanted anywhere. It's frustrating and very hard." Spain's economy is recovering but progress is slow. And finding a job for the millions of long term unemployed is a deep structural problem that's unlikely to disappear anytime soon.

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Spain's jobless rate falls; challenges remain

Friday, August 02, 2013 - 01:19