View all newsletters
Have the short, sharp Spear's newsletter delivered to your inbox each week
  1. Wealth
April 27, 2012

Spain Is Downgraded, but Youth Unemployment is a Bigger Worry for Europe

By Spear's

As Spain’s credit rating falls, tensions will rise says Freddy Barker.

The world’s attention is focussed on Spain, as S&P has just downgraded the debt-riddled country to triple B plus.

But, for me, the most dramatic figures are youth unemployment. 50% of under 25s are out of work and that’s the stuff of revolutions.

Take the Arab Spring. Sure there were many motivating factors behind the depositions of Gaddafi, Ben Ali and Mubarak, but the fact that Middle Eastern youth unemployment stands at around a quarter added numbers, energy and a marketing edge to the protests.
 
Spain is clearly vulnerable. The government has already rescued banks caught in the rubble of the construction boom, and there’s cause for concern that those who survived will be hit by an aftershock of loan defaults.

This will hit the young. When times are tough, firms consolidate before recruiting new faces, and even when the economy picks up, under 25s are caught in the catch 22 of not being able to find work as they haven’t the CVs to prove their worth.

While this is a tale of individuals, it hurts Spain overall. Increased benefit payouts, lost tax revenues and spare capacity all hit the economy directly, while emigration and crime are sinister spin-offs.

What’s worrying is that this isn’t specific to the Iberian Peninsula. The average Eurozone youth unemployment rate is 21.6% and with social media turning sparks into flames, we should all keep an eye cocked on our own back yards.

 
 
Read more by Freddy Barker

Content from our partners
Why investors should consider investing in nature
HSBC Global Private Banking: Revisiting your wealth plan as uncertainty abounds
Proposed non-dom changes put HNW global mobility in the spotlight

Select and enter your email address The short, sharp email newsletter from Spear’s
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network