Unemployed in Spain in 1Q23 up to 3.13 M compared to 3 M at end of 2022

unemployment spain

Bankinter : The unemployment rate has risen in the first quarter of 2023 to 13.26% from 12.87% previously and versus the 13.0% expected. The number of unemployed has risen to 3.13M (as opposed to 3.0M at the end of 2022). The activity rate remains fairly stable at 58.55% (versus 58.52% previously).

Analysis: the labour market is deteriorating more than expected and continues to slow down from 12.48% in 2Q 2022; despite better-than-expected growth dynamics at the beginning of the year, especially driven by lower energy prices. Our projections point to a deterioration in 2023 (13.7% est.) as labour costs rise and economic growth moderates (GDP +1.3% 2023e from +5.5% 2022).

On the other hand, Retail Sales were up 9.5% in March (year-on-year) against the +3.5% estimated and the +4.0% previous. On a month-on-month basis, also +0.5% in March vs -0.3% previously.

Analysis: Good news, Retail Sales are holding up despite the loss of household purchasing power, in an environment of high inflation and rising financing costs.

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The Corner
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.