Unemployment in Spain rising close to 5 mln

Unemployment in Spain is close to the five million mark and still rising, according to figures published Friday by Spain's National Institute of Statistics (INE). The INE study Inquest into the Active Population said that 4,978,300 Spaniards are currently out of work with the unemployment rate climbing to 21.5 percent in the third quarter of 2011. A number of 403,600 more people are now out of work in Spain than in October 2010, a rise of 8.8 percent, according to the study and the trend shows no signs of ending. The unemployment rate between April and June of 2011 stood at 20.89, while Spain has not suffered unemployment rates as high as now since the end of 1996, when the level of unemployment stood at 21.60 percent. The third quarter of the year saw unemployment rise thanks to 129,600 Spanish nationals losing their jobs along with 15,000 foreign residents in the country. Following a positive summer thanks to jobs created in the tourist industry, the service sector ended the quarter on a low note, losing 45,900 jobs. Meanwhile the construction sector continues to suffer with the loss of another 26,000 positions, while 7,400 jobs also disappeared in agriculture. The industrial sector was the only part of the economy which generated some positive news with 23,400 less people out of work. The third quarter of 2011 also saw the number of people who have been out of work for over a year rise by 40,700, while 48,000 extra people are now looking for their first ever job. Despite this, the percentage of under-25's out of work fell slightly, although it still stands at 45.84 percent. Meanwhile there are 1,425,299 Spanish homes where nobody has a job, a rise of 57,700. Given that Spanish banks will now need to find an extra 26,000 million euros to meet the new capital requirement from the European Union, this means banks will be keeping an even tighter control of their purse strings, meaning investment will be further reduced for the near future. A lack of investment coupled with the spending cuts that are expected should the Popular Party, who have a clear lead in opinion polls, win the Nov. 20 general elections, means that the perspectives for the creation of jobs in Spain now remain bleak until at least the middle of 2012.