Record Unemployment in Spain

At the end of the first quarter there were nearly 5.7 million unemployed in Spain, which corresponds to a 24.44% unemployment rate. The country is going deeper into recession and the growth in unemployment has accelerated even more, since 374,000 people lost their jobs in the first quarter of this year, as against 295,300 in the last quarter of 2011. The Bank of Spain forecasts a 0.4% fall in GDP in the first quarter compared with the preceding quarter, when it fell by 0.3%.

At the same time, the Standard and Poor’s (S&P) credit rating agency, which has made throwing salt on the open wounds of governments its specialty, lowered Spain’s rating by another two notches, after having lowered it in January. The credit rating is down from “A” to “BBB+” with a negative perspective, meaning that they intend to return and worsen things in three months.

“In an environment of economic contraction, and contrary to our previous expectations, we think that the trajectory of Spain’s public finances will probably worsen,” the agency writes.

While these “analysts” don’t care a fig about the Spanish, they call for yet more money to save the banks: “We see a growing probability that the Spanish government will have to furnish additional budgetary support to the banking sector.”