Unemployment rate rises in Spain

Unemployment rate rose again in Spain in August this year, putting an end to a four-month decline, said the Spanish Labor Ministry Friday. The number of people currently out of work in Spain now stands at 4,130,927, a rise of 51,185 on the figures, or 1.25 percent over the previous month of July. More than 70 percent of the increase was from the service sector. That means that unemployment has risen by a total of 161,266 (4.06 percent) over the last 12 months. August has traditionally been a poor month in terms of employment in Spain, with the month registering increase for the past 11 years, although this year's figures were slightly better than in 2010 when unemployment rose by 61,083. Spanish Minister of Work and Immigration, Valeriano Gomez said the August rise in unemployment could be partly explained as some Spanish companies only give their workers short-term contracts and then lay them off again during the month when the majority of Spaniards are on holiday. "They allow the social services to take care of the holidays," commented the Minister, adding that the government was looking to clamp down on these practices. The statistics was released just a few days after a decree came into effect in Spain, allowing companies to link separate temporary contracts together for a total of two years without the previous obligation of having to offer the worker an indefinite contract. It is hoped this will give companies confidence to employ more workers, especially young people, who suffer the highest unemployment rates in Spain. According to the statistics published by European Union's (EU) statistical bureau Eurostat on Wednesday, Spain again registered the highest jobless rate in eurozone area with a towering 21.2 percent in July.