Spain's unemployment rate is likely to rise further in the coming months, but at a slower pace, economists at BNP Paribas said.
The firm expects the jobless rate, on average, to go up to more than 18% in 2009 and nearly 21% in 2010. In the third quarter, the jobless rate stood at 17.9%.
According to official data, unemployment increased 2.7% month-on-month in October, after a 2.2% rise in September. Year-on-year, the number increased 35.1%, but slower than the 41.3% rise in September. In October, there were 3.9 million unemployed persons.
The increase in unemployment, combined with the payment of the new 420-euro unemployment benefit to unemployed, whose right for the ordinary unemployment benefit has expired, is likely to contribute to the sharp increase in the public deficit to almost 10% of GDP in 2009, BNP Paribas said.
However, the report noted that the month-on-month rise in unemployment was due to seasonal factors, with October generally corresponding to end of seasonal contracts in agriculture. In this sector, unemployment grew 12.5% in October after a 0.4% rise in the previous month.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.