eli5 Why is Spain’s unemployment rate so high?

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Spain’s unemployment rate has been significantly higher than the rest of the EU for decades. Recently it has dropped down to 11-12% but it has also had long stints of being 20%+ over the past two decades. Spain seems like it has a great geographical position, stable government, educated population with good social cohesion, so why is the unemployment rate so eye poppingly high?

In: Economics

8 Answers

Anonymous 0 Comments

My family moved to Spain and they said that a large proportion of young Spaniards stay at home with their families and then inherit the house. This means they do not need large amounts of income and therefore do not need to work.
I’m not saying this is accurate but that is their personal experience near Alicante. A huge amount of the young work minimum wage jobs for cash in hand so they appear unemployed. Some just work one day a week and stay at home as opposed to moving out

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