BNP Paribas foresees reversal in Spanish labour market

Observers’ expectations expelled this week pessimism about the unemployment figures in the last three months that the Spanish government will soon release. BNP Paribas analysts, too, point at a further fall in jobs up to 26 percent from the 25 percent recorded in September 2012.

As in the case of other southern European economies, the destruction of jobs in Spain has expanded at a higher rate than its GDP contraction. But BNP Paribas  said Monday in an investor report that the situation should improve before summer. The Spanish GDP would be flat, and so cuts in employee numbers could be much milder. Spain could again see  job creation in less than 21 months, when the GDP will increase to slightly less than 1.5 percent.

“It must be noted that macroeconomic conditions have not justified the level of unemployment in Spain,” BNP Paribas said. “With a more flexible labour market now,” experts explained in a clear reference to the reforms introduced by the current government, “a quick recovery would be in the cards.”

Spanish unemployment

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The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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