Employment Outlook 2009 Country Notes: Spain
Spain has experienced the sharpest increase in unemployment in OECD countries since the beginning of the global economic downturn. Since the recession began in December 2007, payroll employment in Spain has dropped by almost 2.3 million and the unemployment rate increased by 9.7 percentage points to reach 18.5% in July, the highest level in the OECD area.
Job losses in Spain would be significantly larger if vigorous macroeconomic measures had not been taken place. Given the severity of the crisis, Spain adopted a fiscal stimulus package that was above the OECD average. An important component of the package, the State Fund for Local Investment in Spanish municipalities, is reported to have contributed to the creation of nearly 400 000 jobs, although a majority of them are temporary and being used to preserve existing jobs rather than creating new jobs.
Long abstract
