Unemployment rises in Spain 98,906 people in October: official

Unemployment in Spain rose by 98,906 persons, a total of 3.808 million people in October, more than in the previous month but at a slower pace than a year ago, said Tuesday the Department of Labor. The number of unemployed in Spain rose by 80,367 in September. In October last year, unemployment increased by 192,658 people.

"That the unemployment continue to rise is in line with expectations, although it does so with less intensity than the same month last year," said Maravillas Rojo, Secretary-General for Employment, was quoted as saying the ministerial note.

The largest increase in unemployment in October was in the service sector with 62,447 people.

"The data responds to the general tone we expected. In the final stretch of the year, unemployment goes up against the previous months, but less negative compared year and we believe they will continue the trend to end the year," said Sergio Diaz, economist the research service of Caja Madrid.

For his part, Minister of Economy and Finance, Elena Salgado, reiterated that the unemployment figures could improve in the coming months.

"Surely in a few months we can begin to see lower unemployment figures," Salgado said in an interview with television channel Tele 5.

"The net employment, we believe it will begin to emerge during 2010," said Salgado.

By sector, agriculture, unemployment rose by 11,899 personnel, with 12.4 per cent, in construction rose 8802, 1.2 percent, in industry increased in 5805 and 1.1 percent, and collective group without previous employment increases in 9953, up 3.5 percent).

"Although the October data are negative, the variation of registered unemployed continues to evolve to the lowest since March," said Red.

The secretary of state warned that use the external sector has begun to show signs of recovery, which could help stem job losses.

Among young people under 25, unemployment rose in October at 16,868 people, with 3.7 percent the previous month, and among those aged over 25 rose by 82,038, or 2.5 percent.

DESCENDING AFFILIATION TO SOCIAL SECURITY

The average Social Security affiliates of Spain in October stood at 17,908,945 occupied, representing an average decline of membership in the month of 26,149 occupied for the whole system, according to the Treasury for Security Social.

However, the Ministry of Labor indicated that data from Social Security affiliation suggests that Spain will end this year with a surplus very close to that presented in the budget for this year.

The general budget of 2009 provided for a Social Security surplus of 0.2 percent of GDP.

"(The data) clearly demonstrate that for the past six months we are in a plateau of sustained membership. (...) What is a clear indication that the Spanish economy is returning to recover the vitality of all sectors of economic activity "said Octavio Granado, General Secretary of Social Security, according to the ministry statement said.