Registered unemployment in Spain, where more than half of young people are out of work, rose for the eighth month in March as the government deepened spending cuts and the economy tipped back into a recession.
The number of people registering for jobless benefits increased by 38,769 to 4.75 million, the Labor Ministry in Madrid said in an e-mailed statement today. That compares with a median estimate of 54,000 in a Bloomberg News survey of three analysts.
Spain, home to almost a third of the euro region’s unemployed, is implementing the deepest budget cuts in at least three decades while the economy suffers its second recession since 2009. Prime Minister Mariano Rajoy, whose government announced spending cuts and tax increases for companies last week, expects the economy to contract 1.7 percent this year, pushing unemployment to 24.3 percent.
Spain already has the highest jobless rate in the European Union at 23.6 percent, EU data showed yesterday. Among young people that figure is 50.5 (U percent, the most on record.
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