Spain’s government forecasts 1.5 million new jobs and an unemployment rate under 10 percent by 2025

The Stability Program published on Friday April 29^th forecasts the creation of 1.5 million new jobs and an unemployment rate of under 10 percent by 2025.

The improved forecast is based on the government’s belief that labour reforms approved at the end of 2021, will reduce unemployment.

The main objective is to bring the current unemployment down from the current rate of 13.6 percent, with the pandemic over and the government making major investments in new infrastructure and new technology.

Adding to the positive forecast is the news that the economy is now on a more sound footing even though the pandemic drove up borrowing, with a positive current account and savings at their highest levels since 2008.

There has also been a drop in temporary unemployment.

The program also focuses on the implementation of active employment policies that seek to reduce structural unemployment making an adjustment between supply and demand. Attention will also be given to increasing flexibility in employment and an increase in productivity.

The government is also working to improve productivity limiting the increase in labour costs and minimising the possible loss of competitiveness in export markets.

Underpinning much of Spain’s government forecast to create 1.5 million new jobs is the desire to inject more flexibility into the labour market and to increase the level of training in-house, so that people are better equipped to do the jobs they were employed for.

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