5 European Countries with the Highest Unemployment Rates

3. Spain

Unemployment Rate: 12.9%

Spain struggles with rising unemployment, reaching 2.77 million in January, attributed to lower productivity. The services sector saw an increase of 58,721 jobless individuals, while agriculture and industry also faced increases. Despite a reduction in the construction sector, Spain’s dual labor market, tight regulations, and reliance on temporary contracts exacerbate unemployment, disproportionately affecting young, unskilled, and immigrant workers. Moreover, Spain contends with persistently low productivity, particularly in smaller firms, hindering job creation. In response, Spain extends cost-of-living support amidst soaring inflation, offering subsidies and VAT reductions. These challenges persist amid global uncertainties like the Russia-Ukraine conflict and the COVID-19 pandemic.