Spanish society isn't up in arms precisely because of the black economy, rendering unemployment indicators really ineffective.
I was in Spain in the early 2000s, and there was a huge Real Estate bubble. People came in droves into the country, illegal immigrants made 3000 euro per month (~5000 US$) tax free without any qualifications, and they couldn't come fast enough. Even then, when demand for workers was IMMENSE, official unemployment figures never came under 9%. That's pretty much the bottom over there.
Rajoy already introduced a less protective employment legislation and he will have to lower the barriers to make contracts further.
No doom and gloom. Hardship, yes. The biggest hurdles are already being taken upon in just about 100 days since the socialists left power:
- forcing banks to re-provision on their massive mortgage leverage. Basically, take the hit and admit that housing prices need to FALL big, and they will have to take a big hit.
- reform in sacred areas like education, healthcare and - most importantly - standard contracts.
Spanish society isn't up in arms precisely because of the black economy, rendering unemployment indicators really ineffective.
I was in Spain in the early 2000s, and there was a huge Real Estate bubble. People came in droves into the country, illegal immigrants made 3000 euro per month (~5000 US$) tax free without any qualifications, and they couldn't come fast enough. Even then, when demand for workers was IMMENSE, official unemployment figures never came under 9%. That's pretty much the bottom over there.
Rajoy already introduced a less protective employment legislation and he will have to lower the barriers to make contracts further.
No doom and gloom. Hardship, yes. The biggest hurdles are already being taken upon in just about 100 days since the socialists left power:
- forcing banks to re-provision on their massive mortgage leverage. Basically, take the hit and admit that housing prices need to FALL big, and they will have to take a big hit.
- reform in sacred areas like education, healthcare and - most importantly - standard contracts.