-EU President Herman Van Rompuy
The number of unemployed people in Spain fell more than initially expected as employers ramped up hiring in preparation for the upcoming summer tourist season. According to the Spanish Employment Ministry, there were 98,265 less people without a job in May compared to the preceding month. In relative terms the reduction was 1.97%. In May of the previous year, the decline was 30,113 people over the prior month. The report also showed that the total number of jobless people stands now at 4,89 million.
Europe's fourth largest economy has been in recession for most of the past four years, as the economy is struggling to emerge from the collapse of the nation's real estate sector. Last week's report showed that Spain's economy has contracted for the seventh quarter in a row, with its economic output shrinking 0.5% in the first three months of this year. Moreover, the economy is expected to contract 1.3% this year, while the Bank of Spain said the recession will extend into the second quarter as well. With 26.8% people unemployed in April policy makers are facing challenges and are under pressure to look for more effective instruments of stimulating economy. At the same time, the youth unemployment remains a serious concern. In April, 3.6 million people under the age of 25 were seeking for a job in the Eurozone, sending an unemployment rate to 24.4%, while in Spain this indicator reached 56.4%.
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