Spain's first quarter unemployment jumps to 17.4%

MADRID (MarketWatch) -- Unemployment in Spain jumped to 17.4% in the first quarter of 2009, bringing the total number of unemployed to 4,010,700, the National Statistics Institute reported on Friday. In the fourth quarter of last year, Spain recorded an unemployment rate of 13.9%. In the last 12 months, the number of unemployed increased by 1,836,600 persons as a deep recession has hit the country hard. Many economists expect Spain's unemployment will top 20% by next year.

OMG !

 

This is a great example of how the rest of the world is lagging the US in this cycle and why earnings projections for the rest of the year and 2010 are too high. They don't take in to account that the rest of the world is going to be in a much worse shape than expected and will not be a driver for US multinationals earnings growth.

 

Relax, if the multinationals want the dollar weaker so that it boosts their overseas earnings they just have to ask (or rather tell). Government by the corporations for the corporations.

 

Spain’s Falling Prices Fuel Deflation Fears in Europe

http://www.nytimes.com/2009/04/21/business/global/21deflate.html?ref=global-home

 

Same thing but worse in Ireland

 

I'm not sure 15% unemployment is not only possible, but likely, in the U.S. within a year or two.

Where are jobs going to come from to replace those lost in manufacturing, finance, retail, and now, government and even health care.

Joblessness is like a cancer that is metastizing.

 

it sounds like the rest of the world is ahead of the US in this down cycle.

 

From Wikipedia, Immigration

Población extranjera en España[1]
Año Extranjeros censados % total
1981 198.042 0,52%
1986 241.971 0,63%
1991 360.655 0,91%
1996 542.314 1,37%
1998 637.085 1,60%
2000 923.879 2,28%
2001 1.370.657 3,33%
2002 1.977.946 4,73%
2003 2.664.168 6,24%
2004 3.034.326 7,02%
2005 3.730.610 8,46%
2006 4.144.166 9,27%
2007 4.519.554 9,99%
2008 5.220.600 11,3%

Minimum wage in Spain: 8736 €/year

What is the productivity of this newcomers?
GDP per capita of Morocco: $4,725
GDP per capita of Ecuador: $7,100

 

Spain was a house of cards built on a corrupt home building industry . It's pretty much the worst case scenario for economic declines.

 

"worst case scenario"

what about the house of cards in the rest of the world .brush up by reading about the dark ages.