Greece debt crisis: Lack of jobs mars the bright outlook in Spain

Bond yields have been rising and equity markets falling in recent weeks, but it is the longer-term issues that worry most Spaniards

Spain is one of the fastest growing economies in the eurozone but 24 per cent of its citizens are jobless (AP)

A common refrain in Madrid is that “Spain is not Greece”, meaning it is wrong to approximate Spain’s economic troubles with those of Greece in recent years. And it is a fair point. Spain is one of the fastest growing economies in the eurozone, while other indicators suggest that, albeit slowly, the Spanish economy is emerging from the credit crisis.

Spain does have its problems, however. Bond yields have been rising and equity markets falling in recent weeks, but it is the longer-term issues that worry most Spaniards. Despite impressive economic data suggesting that the worst is over, unemployment is still at 24 per cent, and new jobs that are being created tend to be lower paid and less secure. More worryingly, youth unemployment is up at almost 50 per cent, and that is leading to the inevitable brain drain of talented youngsters.

Data released on 29 June showed that the population fell for the third consecutive year last year, with nearly 79,000 moving abroad, double the number five years ago when 40,157 left. The most popular destinations are the UK, France and Germany, suggesting on the whole that these are economic migrants.

Worryingly, those leaving are not being offset by new immigrants and the population is shrinking.