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The latest Labour Euro Index published by Adecco and Spanish business school IESE predicts that unemployment in Spain will cross the barrier of 4.6 million unemployed by September this year. The report, which covers the major economies of the European Union, shows that Spain is the European leader of unemployment.
For the sixth trimester running Spain has again published the worst unemployment figures in Europe accounting for 60% of all new job losses in the European Union.
Total unemployment in Spain is expected to rise to 19.7%, which is 8.3 percentage points higher than last year. The number of employed people in Spain on the other hand is still at the 2005 level of 18.8 million.
A major cause for these alarming unemployment figures is the almost total collapse of Spain's construction sector. In the recent past Spain used to build as many new dwellings per annum as the UK, France and Germany combined. Many of these were aimed at foreigners who wanted to have a place in the sun. However, with the arrival of the new Eastern European states in the EU foreign buyers have shifted their interest elsewhere.