economy

Unemployment has reached a new historical record in Catalonia, with 641,948 people being signed on. These figures mean that 8,738 more people were out of work in February compared to January. In Spain as a whole unemployment increased by 112,269 people in February. This is 2.44% more than the previous month and puts the total number of people registered as unemployed on February 29th at 4,712,098.

The plan has a €420 million euro budget for 2012 and aims to foster quality education by changing the current system based on subsidising training courses offered by job-placement organisations and municipalities for another model based on framework contracts and grouping the actors involved. The Catalan Deputy Minister for Employment and Labour Relations explained that the new plan would include specific policies aimed at young people, the disadvantaged, as well as for the sectors and territories hardest hit by the economic crisis.

The Spanish Economy grew by 0.7% last year, however decreased by 0.3% in the last quarter, because of the “contraction in domestic demand”. The Catalan Finance Minister, Andreu Mas-Colell, said he would review the 0.8% growth prediction for 2012, since the latest data points to an economic slowdown. Besides, the Spanish Deputy Minister for the Economy, Fernando Jiménez Latorre, stated that data for the first term of 2012 “will be similar” to that of the last quarter of 2011 “or a bit worse”; if confirmed, it would mean a recession.

15,644 companies opened for business in Catalonia last year, which represents an 8.76% increase compared to 2010. However, in 2011, there was also a 3.17% increase in the number of companies that shut down.

From January 27th to February 5th, those who live in the Catalan capital will enjoy discounts on cultural products, markets, restaurants and hotels throughout the city. The initiative aims at energising the economy at the end of January and stimulating Barcelona citizens to discover their own city.

Exports from the Catalan capital’s port have increased by 14% when compared to 2010. Car exports grew by 25%. 3.8 million people passed through Barcelona Port; 2.6 million were passengers of the 881 cruise ships that docked in the city harbour.

The 2011 price increase is 0.5 percentage points below the 3% inflation rate of 2010 thanks to a drop in the price of fuel and oil and the leveling off of tobacco prices. Inflation in December 2011 was 0.2 points higher compared to December 2010.

The President of Barcelona’s Chamber of Commerce hopes others will join them by adopting a model that combines both public and private cooperation to offer companies new services such as a fund of €2 billion for loans or access to a world network of 1,500 chambers of commerce. With this new model, the Chamber wants to leave the past two years of budget cuts behind, focus on the future, be more useful to its members and offer added value services.

At the end of 2011 there were 614,244 people registered as unemployed in Catalonia, 9.17% more than a year ago. However, unemployment dropped in December by 1,425 people, after it stabilised in November, leaving September and October as the worst months of the year. In stark contrast to Catalonia, the rest of Spain experienced an increase in unemployment in December and 2011 ended with 4,422,359 people signing on the register, 7.86% more than at the end of 2010.

Car sales drastically decreased last year, with the only exception being luxury vehicles. Less than 120,000 cars were sold in Catalonia, a figure similar to that of 1993. In Spain as a whole, car sales fell by 17.7%.

Prices have increased by 3% over the past 12 months. This represents a fall in the annual inflation rate compared to that registered in October (3.1%). In Spain as a whole, November’s annual inflation rate was set at 2.9%. The decrease in the price of medication and fuel is behind the slight annual price reduction. However, in Catalonia the monthly inflation rate increased in November by 0.4% compared to those registered in October, mainly due to an increase in the price of clothes.

With a marginal increase of 111 people, unemployment stabilised last month. The Catalan Government believes the stagnation in the unemployment figures corresponds to the first effects of its action plan launched at the end of October. In Spain, unemployment increased by 59,536 people at the end of November. The latest data set a new historical record for unemployment in both Catalonia and Spain.

The Catalan Government has signed an agreement with the main trade unions and business association to foster “negotiated flexibility” within the labour market. The aim is to provide companies with a greater flexibility framework while securing jobs. The President of the Catalan Government, Artur Mas, suggested the new Spanish Government follow Catalonia’s example of reaching an agreement with the social agents to improve the labour market.

The Catalan Government considered the figures “worrying” but puts them to a “complicated” financial situation that has provoked an economic uncertainty. On Tuesday, the Government announced an action plan to reduce unemployment in the short term. In Spain, there are almost 5 million unemployed people, which represents an unemployment rate of 21.52%. Lleida has Spain’s lowest unemployment rate, set at 13.02%.

In Spain as a whole housing sales dropped by 38%.New-build apartment sales in Catalonia fell by 35% in August, compared to the same month in 2010.