Thanks to spike in tourism, Spain's unemployment drops to 7-year low in June

Unemployment in Spain fell to a seven-year low in June, buoyed by a seasonal spree in the tourism sector, which helped cut unemployment to its record low, since September, 2009. Every one-in-three new jobs created belonged to the hospitality industry, official data showed.

The number of people registering as jobless in Spain fell by 3.2 percent in June from a month earlier, or by 124,349 people, leaving 3.77 million people out of work, data released by the Labour Ministry showed Monday.

Spain has the second highest level of joblessness in the European Union after Greece, with the official unemployment rate at 21 percent in the first quarter. The latest data suggest a second quarter unemployment rate of 20.3 percent, Sabadell said in a note. Official data will be published July 28.

Unemployment fell in all sectors, with the largest share in the service sector, which dropped by 84,760 people, or 3.3 percent, followed by construction and industry. The total number of workers paying into the social security system rose by 98,432 people, or by 0.56 percent from a month earlier, to 17.76 million. In seasonally-adjusted terms, registered unemployed fell by 48,579 people, the ministry said.

Spain’s tourism sector is a booming business during summer, as tens of thousands of people manage to find jobs to cater to the influx of foreign tourists in the country. Hotels and restaurants tend to absorb the extra workforce during the summer season. Meanwhile, the number of tourists travelling to Spain this year is expected to rise to record levels as holiday-makers are avoiding North Africa and the Middle East for growing geopolitical tensions.