April 28, 2013
Source: The Atlantic
Spain is in a great depression, and it is one of the most terrifying things I have ever seen.
Five years after its housing boom turned to bust, Spanish unemployment hit a record high of 27.2 percent
in the first quarter of 2013. It’s almost too horrible to comprehend, but 19.5 percent of the total workforce
has not had a job in the past six months; 15.3 percent have not in the past year; and 9.2 percent have not in the past two years. You can see this 1930s-style catastrophe in the chart below from the National Statistics Institute
(Note: The “already found work” category refers to people who did not have a job at the time of the survey, but did have a job lined up).
Here’s the story of Spanish unemployment in three acts. During the boom, joblessness was relatively high due to persistent structural problems. Then it shot up fast and faster as Spain’s building bust and then Lehmangeddon hit in 2008. But it has kept climbing up since the panic abated, albeit at a less catastrophic pace, due to the toxic combination of too tight money and budgets.
In other words, austerity hasn’t been the path to prosperity. It’s been the path to perma-slump.
But the real story of the Spanish depression has been the story of the indignados
: the mostly young, long-term unemployed. It’s a bit hard to see just how dramatic it’s been in the chart above, so I converted it to a line chart below. Almost all of the increase in unemployment since 2010 has been due to the increase in long-term unemployment of two years or more.
Continue reading at Spain Is Beyond Doomed: The 2 Scariest Unemployment Charts Ever – BlackListedNews.com.