Another One For The Fire

Add Spain to the growing list of European countries where crippling austerity cuts are only making things worse.

The number of people registering for jobless benefits in Spain rose by 34,406, or 0.8%, from February to 4.33 million, the Labour Ministry said in Madrid. Youth unemployment, up to 24 years, reached an impressive 43.6%.

Spain’s unemployment remains at more than 20%, while the number of Germans out of work dropped to the lowest since 1992 last month. Spain’s economy emerged from an almost two-year recession in 2010 before contracting again in the third quarter as austerity measures undermined the recovery.

As part of efforts to tackle the highest jobless rate in Europe, the Socialist government will present a plan this month to encourage unregistered jobs to be declared, Prime Minister Jose Luis Rodriguez Zapatero said last week.

The measures will offer short-term incentives for underground workers to be legalized and will toughen penalties on illegal labour and on people claiming unemployment benefits while working for cash. As many as 500,000 informal jobs may be registered, Expansion newspaper reported on March 31, citing government advisers.

The doubling of the unemployment rate since the collapse of the decade-long property boom and the deepest budget cuts in at least three decades have eroded support for Rodriguez Zapatero, who said on April 2 that he won’t run for a third term in elections scheduled for 2012.

Three out of seven Spaniards under 24 are out of work.  That's basically the same time bomb level of youth unemployment that set off the MENA countries into full revolution:  Tunisia, Egypt, Yemen, and Libya, just for starters have youth employment numbers ranging from 30 to 50 percent.  Spain's 43% is certainly a big, huge danger flag, especially with massive austerity cuts making the situation worse.

The bigger problem is that Spain is yet another country that proves that austerity is failing.  Greece, Ireland, Portugal, the UK, and now Spain are all countries that have made draconian budget cuts in the last 12 months.  Greece and Portugal will almost certainly need another bailout.  Ireland is teetering even after its bailout.  Britain is plunging into recession, and now Spain has 20% national unemployment and rising.

If you're wondering, the youth unemployment numbers for the US are around 18-20%, but for African-Americans age 18-24, that number is 30-33%.

Have a nice day.