Jobs are being created in the Spanish manufacturing sector at their highest rate since 1998, with data from economists showing the Purchasing Managers’ Index (PMI) of the country rose faster than anticipated; hitting highs of 55.4 in May.
The PMI measures the general health of a country’s manufacturing sector. It is determined by the amount of new orders, delivery times, production output, and employment figures.
A ranking of 50 indicates there has been growth over the past month. Analysts suggest that the performance in May was the strongest so far this decade and a great sign that the Spanish economy is gearing up to improve its GDP over last year.
While employment in Spain sits at one of the highest levels in Europe – 17.8% - it has improved the most in the Eurozone over the past 12 months.
The senior economist of IHS Markit Andrew Harker remarked that May was a great month for the Spanish manufacturing sector. Firms were bringing in staff at the highest pace they had for 19 years. Harker expects that job growth will continue for the short-term at the very least as new work continues to open up and the market continues to prove it can handle pressure.
Tourism, real estate, and agriculture are typically the strongest areas of the Spanish economy. Ever since the double-dip recession however, the nation’s employment laws have been liberated somewhat, opening up jobs in the manufacturing sector as more and more companies choose to invest in Spanish workers.
It’s not all good news however; job security and wages have shrunk somewhat recently. The good news is Prime Minister Mariano Rajoy has promised he will address these issues in the near future.