Data Shows Spain’s Job Revival is Due to Tourism and Manufacturing

Data Shows Spain’s Job Revival is Due to Tourism and Manufacturing

The next few years looks very bright for Spain

as I continues its recovery 

Figures don’t mean much out of context, which is why the recovering GDP of Spain may sound good, but people could be left cold without understand just what everything means.

As the economists are cheering a projected 3.2% increase in Spanish GDP for 2017, the average Spaniard, along with expats and holidaymakers, are left wondering what it all means for them.

To put things simply, it all means that there are plenty of new opportunities for employment in Spain, which means that consumer spending is up, tax revenue for the government is up, and property prices and supply are also up.

The latest official data, shows that the tourism and manufacturing sectors are the two key pillars supporting the economic success of Spain.

The National Statistics Institute (INE) has revealed 3.9 million people in Spain were out of work at the end of June, a decrease from the 4.25 million from the end of March. In the period between March and June, around 272,400 jobs were created across the tourism industry as the country prepares for the busy summer season.

While most of those jobs are likely to be seasonal, estimates show that around 30% of them could last for longer if the economic recovery continues.

Additional data provided by market analysts ISH Markit show that Spanish manufacturing firms had their highest increase in employment for over 19 years during July – primarily to keep up with demand for Spanish goods including cars.

This all lead to last month being the strongest month for Spanish job creation since way back in May 1998, according to the Financial Times.

To add to this, data from the Bank of Spain has shown that the average net wealth of the Spanish family is increasing by around 6.9% per year, which means not only is the average Spaniard more secure in their job with more spending money, but also it means average personal debt levels are dropping.

No matter how you look at it, the Spanish economy is no doubt going through some encouraging times, which is encouraging for the people of Spain.

Spanish Manufacturing Growing at Highest Rate for 19 Years

Spanish Manufacturing Growing at Highest Rate for 19 Years

Spain continues to grow on all fronts.

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.

Spanish Manufacturing Finishes 2016 on a High

Spanish Manufacturing Finishes 2016 on a High

Spain is sill beating records in manufacturing

The Spanish manufacturing sector grew by the fastest rate in nearly a year during December 2016; a growth spurred by surging output and new factory orders. The data from a survey by Markit’s Purchasing Managers’ Index (PMI) shows that the index rose by 0.8 to 55.3 in November. This means that the index has stayed above the 50 line – which is the difference between growth and contraction – each month since November, 2013.

On top of this, new vehicle sales in spain were up 11% in 2016, despite fears that the government terminating the scrappage scheme (PIVE) at the end of autumn would mark the end of the recovery for the new cars market. A total of 1.14 million new cars were sold in 2016; up 10.9% over 2015 and the highest annual number since 2008.

Additionally, the data also shows the three car models that were most popular with the Spanish audience in 2016 were the Citroen C4 (34,615 sold), the Seat Leon (33,653 sold) and the Seat Ibiza (31,836 sold).

Spain continues t punch above its weight in all aspects of growth and anyone moving to Spain can see positive signs in all industries.