For the first time since the crisis began, the Survey of Active Workers (knowns by the acronym EPA in Spanish) has resulted in good news. In the second quarter of the year, 149,000 jobs were created. This means that half of the jobs lost last year were restored. Unemployment dropped by 225,000 people and this figure is attributable to the fact that the number of people actively searching for work has dropped by 76,000 people.
Still, the jobs that were created are mostly summer seasonal jobs. We will have to wait until the autumn to see if a long trend of job cuts has reversed. This EPA confirms that something may be stirring in the labor market and that labor reforms are starting to have their effect. On Wednesday elEconomista published a story claiming that the Spanish economy had bottomed out and that many numbers give reason to be optimistic about the long-term economic future of the country.
Good export data and improving GDP growth expectations are two healthy signs for the euro zone. Great Brittain's GDP grew 0.6% last quarter, Germany and Dutch businesses are increasingly optimistic and Italian spending is ramping back up.
It seems that the recession is finally over, although there are still many uncertainties left to clear up. Adding jobs and moving away from having 6 million unemployed workers is a major psychological stimulus, but labor problems are not fully fixed and reforms need a chance to play out fully and effectively. Not to mention the fact that the nation's annual deficit is high and its debt is nearly 100% of its GDP. Hitting rock bottom is one thing, and getting on the road to recovery is another. Is this really the recovery? We will have to wait and see. Many people are hopeful.
