Balearics bucks national trend as unemployment falls again

THE number of people out of work in the Balearics fell for the fourth consecutive month in March, bucking the national trend as unemployment in Spain continues to hit record highs and continues to be the highest in the western world.

The figures were welcomed by the government with the Minister for Tourism and Employment, Joana Barcelo, proclaiming that the region will notice a marked fall in unemployment from next month when the tourism season starts.

Compared to February 1.7 percent less people were out of work last month with the total number of people registered as unemployed now standing at 88'187.

Barcelo admitted that the winter has been a long and hard one for everyone but she stressed that unemployment has certainly bottomed out with one in four new jobs in Spain currently being created here in the Balearics.

But, the unions are not impressed.
Sources from each of the three main unions, the UGT, CCOO and the USO, argued that March's figures do not indicate an overall improvement in the employment market because there are still 1'530 more people out of work in the service sector than there were in March last year and, union bosses claimed that if the service sector, the driving force of the tourist industry, is not working and creating wealth, then the employment market is not improving.

According to the union, many of the new jobs created are only part time or temporary posts and accused the local and central government of failing to stimulate the creation of new jobs.

And, the national figures suggest that the unions could be right.
Spanish registered unemployment increased for the third consecutive month in March reflecting weak economic activity, while consumer confidence dropped on an uncertain global economic outlook. The number of people claiming for jobless benefits in Spain rose by 34'406, or 0.8 percent, month-on-month to 4.33 million in March, data from the Ministry for Employment showed. It followed an increase of 1.61 percent in February. On a yearly basis, people claiming benefits rose 167'056 or 4.01 percent in March.

In the agriculture sector, registered unemployment rose by 5'698 from the prior month and by 1'710 in industry. The increases in construction and services were 1'636 and 14'836, respectively.

The Bank of Spain forecast the unemployment rate to rise to 20.7 percent this year from 20.1 percent in 2010. The rate would only begin to fall slightly in 2012.

Yesterday's figures suggest that national divergence is deepening among major Eurozone nations and struggling peripheral countries. The unemployment rate in the euro currency bloc stands at 9.9 percent in February, down from 10 percent in January.

Last week, official data showed that the seasonally adjusted number of unemployed in Germany fell by 55'000 to its lowest level since 1992.
Spanish consumers are being weighed down by weak real income developments, which is being accentuated by rising food, utilities and transport prices. With poor labour market conditions very much intact and needing to find more money for essential goods, consumers have no choice but to limit non-essential spending and that is obviously continuing to hit the retail sector and that can be clearly seen on the high streets of the Balearics as shops continue to close.