Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Catalonia unemployment jumps as political crisis drags on

Published 03/11/2017, 09:44
Updated 03/11/2017, 09:50
© Reuters. A man holding a Catalan separatist flag looks at men holding a Spanish flag outside the Generalitat Palace, the Catalan regional government headquarters in Barcelona

By Paul Day

MADRID (Reuters) - Registered unemployment rose sharply in Catalonia in October, data showed on Friday, with more people signing on as jobless in the region than anywhere else in Spain as companies fled in the midst of the country's worst political crisis in decades.

Almost 2,000 companies based in Catalonia moved their legal headquarters out of the region in October after an independence vote banned by Madrid that led to the central government sacking regional authorities and taking control.

The number of people in Spain registering as jobless rose for the third straight month by 1.67 percent in October from a month earlier, or by 56,844 people, leaving 3.47 million people out of work, data from the Labour Ministry showed.

Of that, Catalonia saw unemployment rise by 3.67 percent, or 14,698 people, the largest loss of jobs amongst all the regions and compared to a just 0.08 percent rise in jobless in the region of Madrid.

The Bank of Spain warned on Thursday that uncertainty due to the independence drive, if it persists, could lead to slower economic growth and lower job creation in the next few months.

October often sees a continuation of rising unemployment after the summer tourist sector lays off temporary workers in hotels and restaurants.

Registered jobless rose strongest in the service sector, with a 2.2 percent monthly rise, or by 50,885 people, followed by agriculture, marking the end of summer harvests, up 5.83 percent, or 9,194 people.

In Spain, the number of people paying in to the social security system as workers in Spain rose by 94,368 people, to 18.43 million people, the ministry said.

In seasonally adjusted terms, Spain's registered unemployed fell by 23,690 people in October from a month earlier.

© Reuters. A man holding a Catalan separatist flag looks at men holding a Spanish flag outside the Generalitat Palace, the Catalan regional government headquarters in Barcelona

Spain's unemployment rate, taken from a wide survey of the workforce a considered a more accurate representation of the country's unemployed than the monthly figure, fell to its lowest since 2008 in the third quarter at 16.38 percent.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.