Spanish jobless claims fell less than forecast in June, a crucial month for summer hiring, signaling the country’s battered labor market continues to lag economic recovery.
The number of Spaniards without a job fell by 329,397 over the past 12 months, with 94,727 fewer people registered as out of work in June alone, the Spanish Labor Ministry said Thursday. Economists expected jobless claims for the month to drop by 125,000 people, according to the median estimate in a Bloomberg survey.
Summer is a key period for hiring in Spain, as it sees the services sector expanding its workforce to deal with the surge in tourists. Even so, most of these contracts are temporary and are usually terminated once the season is over. So far this year, the number of permanent contracts have risen 18 percent.
While the Bank of Spain expects the economy to grow 3.1 percent this year, after raising its forecast from 2.8 percent, it sees unemployment rates stuck at above 20 percent.