The number of layoffs fell by 72,800 in the third quarter. This is good news even though better figures were expected. The data indicate that GDP grew 0.1% and unemployment fell, confirming that the labor market is starting to create jobs as experts look forward to a possible 1% growth in GDP next year. If the economic landscape remains stable, the biggest problems with the economy could start to let up slightly in 2014.
Another issue is the quality of the jobs that were created during the summer tourist season. Most of them were temporary contracts in the services industry. Even though the number of jobs increased by 39,500 people. The increase was particularly sharp in Catalonia, Baleares and Valencia, which are the regions that benefit the most from tourism.
We will have to watch the numbers closely during the next several months in order to see how the off-season affects jobs in Spain and also pay attention to other regions. For example, in the Basque country and Madrid, unemployment is still high.
Still, the most worrying figure is that the active working population has declined by 33,300 people this quarter and 370,400 over the course of the entire year. The number has been falling since the crisis began in 2008, which means that fewer and fewer people are working in Spain. And there is no end in sight. Some Spaniards have simply stopped looking for work, foreigners are going home to their native countries and young people are moving elsewhere to find jobs. The government should consider this trend seriously, because it lowers Spain's economic potential and could slow down the nation's recovery.
