Seasonal factors behind Spain's unemployment increase

The number of unemployed in Spain is set to increase by 51K in October due to seasonal effects. Even with this increase, the drop in unemployment is expected to reach 300K year-to-date and 700K since early 2013 - though still 2mlns more than in 2007. 

However, the unemployment rate is expected to continue to drop over the coming quarters as growth remains above trend and past reforms remain supportive, states Societe Generale. 

However, we continue to be concerned by the high duality of the Spanish labour market as shown by the elevated (and rising) share of temporary workers.