Job Creation in Spain

J. Andrés, José Boscá, Rafael Domenech and Javier Ferri

Chapter 3 in The Spanish Economy, 2011, pp 69-96 from Palgrave Macmillan

Abstract: Abstract The Spanish economy enjoyed a prolonged period of high growth between 1994 and 2007, characterised by extensive job creation. From the1960s to thee arly 1990s thenumbe r of jobs in theSpanish economy had fluctuated around a steady level of some 13 million. This led many people to support the idea that the Spanish economy could never break through this ceiling. However, between 1994 and 2007 the labour market saw an increase in employment from 13.3 to 20.6 million workers. This great modernation period brought the Spanish economy historically low interest rates and an expansion of credit facilities, which helped to sustain a vigorous and prolonged path of both private consumption and investment growth. Spain also managed to reduce public debt to a previously unknown level of around 30 per cent, and turned endemic public deficits into surpluses, reaching 2 percentage points of GDP in 2007. Throughout this expansionary process the labour force increased considerably as a result of sustained immigration flows; nevertheless, the unemployment rate converged to average European levels. In this sense, the rate of unemployment fell from around 20 per cent in the mid-1990s to a level of 8 per cent in 2007. For the first time since the first big oil price shock in the 1970s, Spanish unemployment was similar to the averagein theEurope an Union.

Keywords: Labour Market; Unemployment Rate; Total Factor Productivity; Employment Growth; Labour Market Institution (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-30754-4_3

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230307544

DOI: 10.1057/9780230307544_3

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().