The Federation of European Employers (FedEE) has reported in the EU27 as a whole the labor market was expanding throughout 2010 but the trend has been downward since Q2 2011 – mainly due to the rise of real earnings relative to production. Spain’s labor market index began 2010 well below the EU-average level and has continued to deteriorate over the entire period.During the last two years the Spanish economy has been characterized by alternating periods of quasi-zero growth and periods of substantial negative growth. This appears to be primarily due to its poorly performing industrial sector leading to a sustained decrease in labor demand.
Robin Chater, secretary-general of the FedEE, said: “Looking at unemployment rates alone can often be highly misleading as there is often a lag between job affordability (real labour costs per unit of output) job creation and the filling of new vacancies. The index shows how these fundamentals come together into a true swing of supply and demand.”
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