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SpainSpain SPECIAL EDITIONSPECIAL EDITION Prioritize the latest and most accurate information. Prioritize the latest and most accurate information. JULY 2026ISSUE 01 ECONOMICS MAGAZINEECONOMICS MAGAZINE HUNDREDS OF MILLIONS OF HUMAN BEINGS ON OUR PLANET INCREASINGLY SUFFER FROM UNEMPLOYMENT, POVERTY, HUNGER, AND THE DESTRUCTION OF THEIR FAMILIES. HANS KUNG HUNDREDS OF MILLIONS OF HUMAN BEINGS ON OUR PLANET INCREASINGLY SUFFER FROM UNEMPLOYMENT, POVERTY, HUNGER, AND THE DESTRUCTION OF THEIR FAMILIES. HANS KUNG Unemployment rate give big impact in Spain’s economic growth. Unemployment rate give big impact in Spain’s economic growth. DIVE DEEPER INTO THE OCEANS OF SPAIN’S ECONOMICS CONDITION. DIVE DEEPER INTO THE OCEANS OF SPAIN’S ECONOMICS CONDITION. Inflation or Unemployment? Inflation or Unemployment?
Table Of Contents Introduction Recommendation References Policy Explanation Conclusion Background of the country. Issue: Inflation or Unemployment? Objectives of the study. Recommendation/ Suggestion from Students Books, journals, reports, websites Fiscal Policy & How it Solve Monetary Policy & How it Solve Graph ECONOMIC MAGAZINE PAGE 01-04 PAGE 08 PAGE 11-13 PAGE 05-07 PAGE 09-10 Successful or Unsuccessful ?
Introduction WELCOME TO SPAIN Spain is located on the Iberian Peninsula in southwestern Europe. It sharing the peninsula with Portugal. One mountains that seperating Spain from France to the northeast which is The Pyrenees Mountains. Major cities in Spain include Madrid, Barcelona, Valencia, Sevilla, and Zaragoza. All these centers have experienced rapid growth with over three-fourths of the population residing in urban areas by the early 21st century. The economy reached about $1.73 trillion in 2024, among the world’s 15 largest with tourism, automotive, and farming is the main. Spain is the world’s largest economies. In terms of GDP per capita, Spain stands at about $35,327 (current US$, 2024) What are the main activities in Spain? Primary Sector 52.48% of the land dedicated to agricultural. The country mainly produce a variety product from animals. The main agricultural product is milk, berley, wheat, grapes, sugar beets and more with a high quality. Agricultural contributing only 2.6% to the GDP and plays a vital role in providing employment and sustaining rural communities. Secondary Sector Secondary sector involves industries that convert raw material from primary activities into finished products for consumers. For examples, food, metals and medical equipment as their main industrial. Manufactures playsa big role in Spain’s exports that accounting for 65.71 % (2023). 01
02 Tertiary Sector Tertiary sector in Spain encompasses various service that enhance productivity and meet needs. The main of tertiary activities in Spain include restaurants, healthcare, education, and others. Actually, Spain’s economy relies good in tourism, contributing significant to its GDP. Spain also records 94 millions international tourist arrival in 2024. The popular destinations include Barcelona’s Sagrada Familia.
03 ISSUE: UNEMPLOYMENT IN SPAIN This chart shows Spain’s quarterly unemployment rate, showing a continuous decline throughout 2025 before slightly increasing at the beginning of 2026. In the first quarter in 2025, unemployment stood at 11.36%, but it decreased to 9.93% by the fourth quarter reflecting signs of economic recovery. However, at the first quarter in 2026 recorded a big increase to 10.83% . It shows that Spain;s labor market remains fragile. This pattern highlights the persistent challenge of structual unemployment, where jobs lost in certain industries are not easy replaced. Even though there have been improvements, the unemployment rate in Spain is still above the European Union average, highlighting the need for deeper reforms to ensure stable and long-term job opportunities.1. Structural labour market weaknesses: Youth employment crisis- There is a gap between skills and education. This means that most youth under 25 in Spain are overqualified; they have higher qualifications than what is required for the jobs they apply for. As a result, 16.6% of university graduates are forced to work in low-level sectors such as restaurants, and 16.2% in the trade sector, which actually does not require their level of education. 2.Economic and demographic pressures : The tourism sector is a major contributor to employment, but its seasonal nature causes unemployment rates to rise and fall according to the season. When an economic crisis or global inflation occurs, young people working in this sector will be the first group to lose their jobs. In addition, the construction sector is very sensitive to the economic cycle. When public and private investment decreases, construction projects have to be stopped and many workers, including young people working in this sector, will lose their source of income. This makes jobs in this sector unstable and easily affected by economic changes. SPAIN’S HAS A GOOD ECONOMY ACTIVITIES IN TOURISM AND HOSPITALITY, BUT UNEMPLOYMENT IS ONE OF THE BIGGEST ECONOMIC CHALLENGES. IN RECENT YEARS, YOUTH UNEMPLOYMENT HAS STAYED AT 23.7% IN MAY 2026. IT SHOWS A DEEP STRUCTUAL PROBLEMS IN THE JOB MARKET. How can the unemployment rate be like this?
OBJECTIVES OF THE STUDY The main reason we studied about Spain’s country is because : To research Spain’s Unemployment To identify how their country use policy in handling those situations. To differentiate with other country. (Germany) To take a lesson and make improvement for Malaysia 04
Policy Explanation05 How Is It Solve the Unemployment Issue in Spain? The Recovery, Transformation and Resilience Plan (PRTR) helped address Spain’s unemployment issue by increasing employment opportunities in growing sectors of the economy. Investment in areas sech as renewable energy, digital technology, and sustainable infrastructure created demand for skilled and unskilled workers, helping absorb unemployed workers into new jobs. Following the COVID-19 pandemic, Spain faced major economic challenges including business disruptions, reduced economic activity, and risks to employment. To support recovery and address these challenges, the Spanish government introduced the Recovery, Transformation and Resilience Plan (Plan de Recuperación, Transformación y Resiliencia, PRTR) in 2021, financed through the European Union’s Next Generation EU funds. The plan represents an expansionary fiscal policy approach, where public investment is used to stimulate economic growth. create employment oppoturnities, and modernise the economy. It focuses on key areas such as digital transformation, green transition, business support, and improving workers’ skills to strengthen Spain’s labour market recovery. FISCAL POLICY The plan also reduced unemployment by improving worker’s ability to adapt to changing labour market needs. Through training and reskilling programmes, workers were able to develop digital and technical skills requires by emerging industries. At the same time, support for businesse helped companies expand their operations and maintain employment. Overall, the PRTR contributed to reducing ynemployment by creating jobs directly through investment projects and indirectly by strengthening businesses and improving workforce skills.
06 As a member of the Eurozone, Spain does not independently control its monetary policy. Instead, monetary decisions are made by the European Central Bank (ECB), which manages monetary policy for countries using the euro During periods of economic difficulty, including the aftermath of the financial crisis and the COVID-19 pandemic, the ECB introduced expansionary monetary policies to support economic recovery. These measures included lowering interest rates and implementing asset purchase programmes to improve liquidity and stabilise financial conditions across the Eurozone, including Spain. The ECB’s expansionary monetary policy helped reduce unemployment in Spain by encouraging economic activity and supporting business growth. Lower interest rates made borrowing cheaper companies, allowing them to invest, expand their operations, and increase hiring. As businesses grew, the demand for workers increased, creating more employment opportunities. In addition, asset purchase programmes improved access to credit by providing more liquidity to financial markets. This helped businesses, especially those affected by economic downturns, maintain their operations and avoid further job losses. By supporting economic recovery and increasing investment, these monetary measures contributed to higher employment levels and a gradual reduction in Spain’s unemployment rate. MONETARY POLICY How Is It Solve the Unemployment Issue in Spain?
Spain Recovery, Transformation and Resilience Plan. The infographic shows how government spending and investment under Spain's fiscal policy helped create jobs, support businesses, and reduce unemployment after the COVID-19 pandemic.Spain's unemployment rate (2015–2024). The graph illustrates the changes in Spain's unemployment rate before, during, and after the COVID-19 pandemic, highlighting the positive impact of fiscal policy on employment recovery.Spain's Economic Recovery Through Fiscal Policy 07The infographic illustrates how Spain used fiscal policy to reduce unemployment through the Recovery, Transformation and Resilience Plan, funded partly by the NextGenerationEU programme. The Spanish government increased public spending on infrastructure, green energy, digital transformation, education, and worker training to stimulate economic growth. Financial support was also provided to businesses, especially small and medium- sized enterprises (SMEs), to help them maintain operations and create new jobs. These investments encouraged business expansion, improved workers' skills, and increased employment opportunities, contributing to a gradual decline in Spain's unemployment rate.The line graph shows the changes in the European Central Bank (ECB) interest rate over time. During periods of economic slowdown, the ECB lowered interest rates to encourage borrowing by businesses and households. Lower borrowing costs helped businesses invest, expand their operations, and hire more workers, which contributed to reducing unemployment. As inflation increased in 2022– 2024, the ECB gradually raised interest rates to control rising prices. Although higher interest rates help reduce inflation, they may slow business investment and job creation. Therefore, monetary policy supports employment by maintaining economic stability while balancing inflation.Spain Recovery, Transformation and Resilience Plan. The infographic shows how government spending and investment under Spain's fiscal policy helped create jobs, support businesses, and reduce unemployment after the COVID-19 pandemic.Spain's unemployment rate (2015–2024). The graph illustrates the changes in Spain's unemployment rate before, during, and after the COVID-19 pandemic, highlighting the positive impact of fiscal policy on employment recovery.
08 What Spain Can Learn from Germany? Spain can learn from Germany's dual vocational education and apprenticeship system, which combines classroom learning with practical work experience. This system helps students develop the skills needed by employers and makes it easier for young people to find jobs after graduation. Spain can also strengthen cooperation between schools, universities, and businesses to ensure graduates have skills that match labour market needs. By expanding vocational training and apprenticeship programmes, Spain can reduce youth unemployment and create a more skilled workforce, supporting long-term economic growth.SUGGESTIONSUGGESTIONSUGGESTIONSUGGESTIONSUGGESTIONFOR THE GOVERNMENT TOFOR THE GOVERNMENT TOFOR THE GOVERNMENT TO OVERCOME THE UNEMPLOYMENTOVERCOME THE UNEMPLOYMENTOVERCOME THE UNEMPLOYMENT FOR THE GOVERNMENT TO OVERCOME THE UNEMPLOYMENT FOR THE GOVERNMENT TO OVERCOME THE UNEMPLOYMENT
Conclusion A Dual-Engine Response to Spain's Labor Crisis (Unemployment) 09 Using two major economic policies at the same time to solve a single massive (unemployment) problem. Spain's severe post-pandemic unemployment, policymakers fired up two separate engines—Fiscal Policy and Monetary Policy—working together like a twin-engine airplane to pull the economy out of a crash. When the COVID-19 pandemic struck, Spain faced an economic double-whammy: widespread business disruptions and a sudden, sharp spike in unemployment. Rebounding from such a deep crisis required more than just standard recovery plans. It demanded a synchronized, dual-engine approach combining Spain's targeted domestic spending (fiscal policy) with regional financial support from the European Central Bank (monetary policy). On the spending side, the Spanish government introduced the Recovery, Transformation, and Resilience Plan (PRTR), powered by an initial €10 billion from the European Union. Instead of simply handing out temporary financial aid, this policy focused on the future. Government funds were poured into growing sectors like renewable energy and digital technology. Recognizing that a changing economy needs changing skills, the plan funded training programs to help unemployed workers learn digital and technical trades. This smart move directly created new jobs while ensuring the workforce was actually qualified to fill them. Simultaneously, the European Central Bank (ECB) acted as a financial shield. By slashing interest rates and purchasing market assets, the ECB made borrowing incredibly cheap. This massive injection of cash gave businesses—especially small and medium enterprises (SMEs)—the financial lifeline they needed to keep their doors open, avoid mass layoffs, and eventually start hiring again. When inflation began to creep up between 2022 and 2024, the ECB carefully raised interest rates to stabilize prices, executing a delicate balancing act to protect job growth without letting living costs spiral.
10 Did Spain successfully overcome its unemployment issue? The short answer is partially, but challenges remain. Those data clearly shows that these combined policies successfully broke the back of the pandemic-era spike, driving a gradual, steady decline in unemployment. However, as the visual data highlights, Spain still registered a high unemployment rate of 11.7% in early 2024. (Nearly double the European Union averages). Ultimately, Spain’s journey proves that while fiscal and monetary policies are highly effective at rescuing an economy from total collapse, resolving deep-seated, structural unemployment takes time. The dual-policy framework did not completely cure Spain's job market issues overnight, but it undeniably laid down a modern, resilient foundation for long-term recovery. “I belong to the generation of workers who, born in the villages and hamlets of rural Poland, had the opportunity to acquire education and find employment in industry, becoming in the course conscious of their rights and importance in society.” Lech Walesa Conclusion
ECONOMICS MAGAZINE BOOKS/JOURNAL/ARTICLES/WEBSITES REFERENCES 11 INTRODUCTION 1.issues: unemployment rate in 2026 https://tradingeconomics.com/spain/unemployment-rate https://countryeconomy.com/unemployment/spain? sector=Unemployment+less+than+25+years&sc=LAB-25- &year=2026 https://www.52spain.com/d/147729-Spain-s-Unemployment- Report-for-May-2026-Overall-Rate-at-10-3-Youth-and- Women-Face-Severe-Challenges https://www.52spain.com/d/135247-Spain-s-Unemployment- Rate-Surges-in-January-2026-Weather-and-Seasonal- Factors-Cited-as-Main-Causes
References! OFFICIAL NATIONAL MOTTO OF SPAIN NON PLUS ULTRA ("NOTHING FURTHER BEYOND"). “The Federal Reserve's objectives of maximum employment and price stability do not, by themselves, ensure a strong pace of economic growth or an improvement in living standards. The most important factor determining living standards is productivity growth, defined as increases in how much can be produced in an hour of work.” Janet Yellen ECONOMICS MAGAZINE 1.Issues: Unemployment Rate in 2026 https://tradingeconomics.com/spain/unemployment-rate https://countryeconomy.com/unemployment/spain? sector=Unemployment+less+than+25+years&sc=LAB-25-&year=2026 https://www.52spain.com/d/147729-Spain-s-Unemployment-Report-for-May-2026- Overall-Rate-at-10-3-Youth-and-Women-Face-Severe-Challenges https://www.52spain.com/d/135247-Spain-s-Unemployment-Rate-Surges-in- January-2026-Weather-and-Seasonal-Factors-Cited-as-Main-Causes 1212
References! ECONOMICS MAGAZINE 2.CONTENT Policy Explanation Fiscal Policy: https://digital.gob.es/en/ministerio/prtr https://stip.oecd.org/stip/interactive-dashboards/policy- initiatives/2025%2Fdata%2FpolicyInitiatives%2F99996039 Monetary Policy: https://www.ecb.europa.eu/mopo/implement/app/html/index.en.html https://www.ecb.europa.eu/stats/policy_and_exchange_rates/key_ecb_inte rest_rates/html/index.en.html Examples/data/graf/infografic https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS?locations=ES https://ec.europa.eu/eurostat https://commission.europa.eu/index_en 1313
SPAINJULY 2026ISSUE 01 ECONOMIC MAGAZINE