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ARCHIVED - Unemployment back up over 40 per cent among young adults in Spain
Spain has the highest rate of unemployment in the EU among under-25s
One of the statistics within Spain’s Active Population Survey for the third quarter of 2020, which was published by the central government’s statistics unit on Tuesday morning and which shows a further increase of 355,000 in the number of people unemployed, is that the unemployment rate among young adults has shot up to 40.45 per cent, higher than at any time since the first quarter of 2017.
It is widely suspected that younger adults are largely responsible for the momentum with which the second wave of coronavirus infections has spread in Spain, due to their apparent lack of conscientiousness in maintaining social distancing, and it is interesting to note that it is precisely this age group which is likely to suffer most in terms of the economic consequences. If businesses find themselves obliged to lay workers off, as many are likely to in the current economic climate, then the redundancies are most likely to be decided on a “last in first out” basis, or relating to whichever members of staff are cheapest to lay-off and as a consequence the younger members of staff are those who will most probably be out of work. Businesses employing staff in Spain must pay very high redundancy packages to employees; the longer they have worked for a company, the greater their entitlement to redundancy payments, so as a result it is usually cheaper to cut the younger members who have generally amassed a smaller redundancy entitlement.
The latest data show that the number of under-25s out of work in Spain rose to 622,400 during the third quarter and that the rate of unemployment in this age group is now 8.8 points higher than the 31.6 per cent of a year ago. These figures closely match those produced by the EU statistics agency Eurostat, who report that the figure of 41.7 per cent youth unemployment in Spain is the highest in the EU.
Further bad news in the latest Active Population Survey is that the number of long-term unemployed in Spain rose by 22.7 per cent between July and September to 1,248,300 and is now 3.1 per cent higher than a year ago.