Eurozone fears fuelled as Spanish jobless rate soars
Spanish unemployment – already the highest in Europe – spiked up again yesterday, piling more pressure on the struggling Madrid government and sending investors scurrying for safety.
Official figures showed the number of jobless rose by 365,900 in the first three months of the year, taking headline unemployment to 24.4 per cent. Youth unemployment rose to 49.6 per cent.
Economists warned accelerating joblessness will undermine the government's efforts to slash Spain's deficit from 8.5 per cent of GDP to 5.3 per cent by the end of the year.
The dire employment figures followed a downgrade of Spain's sovereign debt by two notches late on Thursday by Standard & Poor's, with the credit rating agency citing the poor outlook for growth and rising public debt levels. The country's 10-year borrowing costs rose close to the 6 per cent danger zone yesterday.
Madrid will publish its official GDP figures for the first quarter of the year on Monday, but the Bank of Spain has already estimated that the economy shrank by 0.4 per cent over the three months, which would put the country firmly back in recession.
In further signs of intensifying eurozone financial stress, Italian borrowing costs also jumped yesterday, after Rome was forced to pay 5.84 per cent to sell €5.95bn (£4.85bn) worth of 10-year bonds, up from 5.24 per cent it paid in a similar auction last month.
A cautionary tale for ambitious would-be authors
X Factor judge will appear in court later this month
Gurdwaras-turned-food banks: Sikh temples are catering for rise in Britain’s hungry
The poorest pay the price for austerity: Workers face biggest fall in living standards since Victorian era
N Korea confirms removal of Kim Jong-un’s 'depraved' uncle Jang Song Thaek
10 stone five-year-old taken into care
'I'm experiencing austerity as well', says Princess Michael of Kent
- 1 Gurdwaras-turned-food banks: Sikh temples are catering for rise in Britain’s hungry
- 2 Council bans use of word ‘Commie’ – but ‘fascist’ and ‘Nazi’ are fine
- 3 The poorest pay the price for austerity: Workers face biggest fall in living standards since Victorian era
- 4 Newly vegan Beyoncé wears fox fur to dine in meat free restaurant
- 5 'I'm experiencing austerity as well', says Princess Michael of Kent
- < Previous
- Next >
iJobs Money & Business
£44000 - £55000 per annum + Excellent Benefits: Pro-Recruitment Group: Confide...
£25000 - £35000 per annum + Benefits : Harrington Starr: PHP Symfony2 Framewor...
£40000 - £55000 per annum + Bonus and Benefits: Harrington Starr: A leading pr...
£50000 - £60000 per annum + Bonus + Benefits: Harrington Starr: Market Data An...