Spanish unemployment hit its highest level in the second quarter since the Franco dictatorship ended in the mid-1970s, succumbing to a crisis of confidence among business and consumers that looks likely to escalate as the country's recession drags on.
The jobless rate rose to 24.6 percent from 24.4 percent in the three months to March, the National Statistics Institute said on Friday.
The number of unemployed Spaniards hit 5.7 million, giving the country the highest proportion of people out of work in the European Union.
That figure continues to rise as a government battling to stave off a sovereign bailout piles on fresh austerity measures while the economy shrinks.
"It's another example of the dire position the economy is in, and with the economy unlikely to expand anytime soon, and probably more likely to fall deeper into recession, things are only going to get worse," economist at Capital Economics Ben May said.Spain's borrowing costs still out of control , seeking large bailout to bring rates down. Does Europe have enough money? Will Spain fight through and come out on top? Who better to ask then Spain's budget minister:
Spanish Budget Minister Cristobal Montoro said Thursday that the country is out of cash to pay for public services, heightening fears that it could default on its debts.
"There is no money in the public coffers," he said in a speech to Spain's Parliament.
This appears to be a far cry from what he said a month ago: Less than a month ago, Montoro told the Spanish parliament that the government would not need a bailout "because it does not need to be rescued."
This tells me Europe continues to be in big trouble. Things must get worse before it gets better. Too much borrowing. If Greece was not enough Canada, lets look and learn from the folly of Spain.
Lefties, excessive social spending destroys wealth. How many more examples do you need?
If you love people so much, do what millions of people are doing: earn money and give it away to noble causes. We all agree meeting others needs is just and noble. Lets not do it in a way that bankrupts the nation. When the socialists realize wealth is earned by hard work, learning tough lessons and meeting needs, the world will be a happier place.