Spanish Q1 2010 Unemployment Number Accidentally Leaked, Surpasses 20% For First Time Since 1997

Tyler Durden's picture

A freak leak of the Spanish unemployment number by the National Statistical Institute (INE), the equivalent to the DOL, was captured by Spanish daily, according to which for the first time since 1997, the unemployment rate in the country that was notched by S&P today, will surpass 20%. This number was supposed to be under embargo until Friday. According to the temporary leak which was subsequently promptly removed, the number of unemployed in Spain increased from 4.3 million to 4.6 million between the end of 2009 and March 31, 2010. What's worse is that the unemployment among Spain's youth is reaching epidemic proportions: "the unemployment rate for those under 25 years in the first quarter of 2010 was 40.93% and 18.02% in those over 25 years. In the group of 16-19 years, the rate is 59.79% and 13.1% among the unemployed aged 55 and older." Dealing drugs is probably a more lucrative job than working for the government anyway. No taxes either.

More from ABC, translated by Google:

The Labour Force Survey also reveals that the number of employed at the end of the first quarter of this year was 18,394,200 people, representing a decrease of 251.7 thousand compared to those who had at the end of 2009 (18,645,900).

By sectors, only agriculture is an increase in the number of employed persons (52 600) to a total of 835 200. On the contrary, this group fell by industry (81 100) to 2.5998 million, construction (139 700), to 1.663 million, and services (83 600), up 13.2961 million occupied.

If you thought the US labor participation rate was horrible, Spain is a whole new ballgame:

its part, the employment rate in this period was 47.84% and the
participation rate has fallen from 59.76% (last quarter of 2009) to
EPA data from the first quarter of
2010 make it difficult to achieve the objectives of the Government to
close this year with an average annual rate of 19%.
Although the economic vice president, Elena Salgado,
has admitted on occasion that time the unemployment rate could exceed
20%, the fact that this percentage has already been exceeded in the
first quarter greatly complicates the executive's plan Rodríguez

Something tells us that S&P will not be too happy with this development. But at least they had their say. Now it's time for Moody's to chime in. And speaking of Moody's, just how long do they hope to continue the farce of rating Greece 6 or so notches above S&P and not have Warren Buffet sell all of their stock?

h/t John

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hedgeless_horseman's picture

Forget about must see TV!  Tyler-Freakin'-Durden is monitoring Spanish unemployment number leaks at 10:20pm on a Wednesday.  You, Sir, are going over and above the call of duty.  God bless Al Gore for inventing the Internet.

Now, back to my regularly scheduled cocktails and music.

george22's picture

Thank you for that informative post. I really love to read articles that have good information and ideas to share to each reader. I hope to read more from you guys and continue that good work that is really inspiring to us. GoSeeq asvab

drwells's picture

If God's bank wasn't already running the world, I bet they'd be losing money ever since blocking access to this site.

sushi's picture

Lets get those unemployed spaniards in line to contribute megabucks in support of 20 year old retired Greek hairdressers and the 40,000 members of the Greek Air Force on 24x7 permanent beach and ouzo duty.

Assetman's picture

LOL.  Because if we don't laugh, we'll all be crying. ;)

What I find funny is that "20% unemployment" Spain will need to issue more debt to essentially finance their IMF contribution to the Greek Air Force.

Chances are, it will get even more bizarre in the EU.

FischerBlack's picture

Let's be honest, with the Greek air force grounded the skies are quite a bit safer over there. And Spanish unemployment of 20% is total BS. It doesn't even count the prostitutes and professional beggars, which makes it a meaningless number.


Sqworl's picture

Tyler & Co are true "rockstars"....:-) 

cswjr's picture

Two days early?  Freak leak my a**.  This has IMF written all over it: "Dear Ms. Merkel, get your legislators in line already."  Or maybe I'm just getting too cynical about all of this.

Mitchman's picture

Didn't Mrs. Merkel stop by in Spain two days ago on her way home?

dumpster's picture

a leak

its  the buzz in the standing room only commodes.


SWRichmond's picture

You're not too cynical.  Nothing in this sphere happens by accident.

One of the guests on the panel Roubini was on (recent Tyler post) said that a weaker Euro helps EU, so let the bad news roll!

Fritz's picture

Spain needs to get with the program.

Don't they realize that a government can change the methodology for the calculation or just flat out make shit up so as to hide the ugly truth?

Clearly, they have not been paying attention. 

Asimov's picture

And could well be why it was leaked.  So it couldn't be changed.

AnAnonymous's picture

Or maybe these figures already correspond with the approved methology for the calculation... They might have as well already smoothened the 'ugly truth'

Yardfarmer's picture

I thought Spain itself was downgraded  today, causing further panic. Between the rating agencies, the hedge funds and the speculative derivative traders, will there be any scraps of stray meat left on the sovereign carcasses of the Eurozone? I can hardly wait until the scavenging begins in California, Nevada, Florida, Arizona, Illinois etc... btw, is the national guard really being called out in Chicago to quell the murder frenzy or am I just dreaming about all this? 

whatsinaname's picture

yes, there have been suggestions to bring the NSG or the Army to quell the madness in Chitown.

hedgeless_horseman's picture

How can Chicago have so much violence when they have gun control?

Alienated Serf's picture

CIA airdrops em with the crack shipments.

twippers's picture

simple reason why the national guard is coming to chicago........ the vancouver canucks arrive on thursday for their series against the blackhawks.


alien-IQ's picture

Ahhh...that explains why the EUR just took off like a rocket...the jobless recovery goes global....?

gimli's picture

Ah -- but see, agriculture gained  ....... Spain is planting those pot fields so it can compete with the USA -- that low Euro will kill the California market.

tip e. canoe's picture

ja mon

serf, did you happen to catch gary johnson (frmr NM guv) on WNYC today?  he made a very cogent eloquent rational argument for legalization on air.   would love to see him debate prez hope-o-dope on this.



Problem Is's picture

"Spanish unemployment number by the National Statistical Institute (INE), the equivalent to the DOL..."

So... If the INE  = US BLS...

INE: Pronounced eye-nee? I know a Spanish girl with a hell of an INE... Anyway...

Then if the INE counted ALL of the Spanish unemployed, the Spanish unemployment rate is really 38% ???

So is 20% the Spanish U3 ??

Just asking...

Hansel's picture

the participation rate has fallen from 59.76% (last quarter of 2009) to 59.83%

Something got mixed up in the Google translator ether, I'm guessing.

tom a taxpayer's picture


The real reason for Standard & Poor's downgrade of Spain:

"A Danish restaurant which serves dishes such as radishes in edible soil has emerged as the best in the world, knocking Spain’s exclusive El Bulli off the top for the first time in five years and demoting the coveted British eatery The Fat Duck to number three."

"El Bulli’s defeat is another blow for the world’s most exclusive eatery and its trailblazing chef, Ferran Adria, 47, after he announced in January that the venue would close for two years from 2012. He said he decided to shut the restaurant, situated on Spain’s northeastern Catalan coast, for reflection and plans to reopen it in a new format."

Looks like Spain is closing for reflection and will open in two years in a new format.

Anonymouse's picture

Mmm-mmm!  Radishes and dirt.  Just like Mom used to make

Problem Is's picture

Radishes and dirt... just like my older brother used to make me eat when he shoved me faced down in mom's garden... ahhh, childhood memories...

sushi's picture

I remember my mum explaining we were too poor to afford the radishes. Got extra large helpings of everything else though.

Dr Hackenbush's picture

The whole concept of a globalized economy was sheer brilliance.  Now we all drink from the same poisoned well.


AnXmarine's picture

Some Spanish commentary, plus the voice of the working class....

Something doesn't seem quite right about this concept.....

digalert's picture

With all the global econo nonsense, how about nations have a race to full UE. The winner ie; no workers, gets lifetime support from the other nations.

Bolweevil's picture

Crack a 40 for the homies in Espana (Chicago).

percolator's picture

Harry Wagner asked me again to comment for him tonight.  20% and rising unemployment is bullish and HW said he'll will become maximum bullish once this number hits 100% as it mean everyone's so rich no one needs to work.

akak's picture

Before responding to the virtually ubiquitous ZH poster "HarryWanger", please be aware of just whom and what you are dealing with in this person:

His real name is James Kostohryz, and he is here posing as a troll in dishonesty and in disregard for the fundamental purposes of this forum. He is NOT posting here in good faith, but is purposely antagonizing those with independent, anti-establishment views and opinions for his own selfish and cynical purposes, as part of a study on "the psychology of permabears". 

He believes that anyone who opposes the current widespread fraud, corruption and rampant lies within our societies and governments are "utopian" and unrealistic, pollyannish dreamers.

And for those ZeroHedgers who are advocates of sound money backed by gold, this bankster shill is already out there with one of the most disingenuous, dishonest pieces of pro-establishment propaganda on the topic, expounding on how such financial integrity is "impossible", and merely "the rants of an ideological fringe":

Please do NOT respond to this reprehensible troll, here or anywhere else on ZeroHedge.  He is NOT here in good faith, and should be shunned!

sebmurray's picture

Permabears of the world unite!

drwells's picture

That article actually has a few good points about bear psychology, unfortunately smothered in a disingenuous helping of "it's different this time".

Ironically, the "truly capitalist civilization" he mentions is part of the bears' utopia. Now, if he just wants to come out and say he's bullish on socialist kleptocracy, that's a different story. Oh, wait, that's part of my black and white thinking again. Well, when CONgress votes for TARP after it voted against it, despite 400-1 opposition from its supposed constituency, I'm afraid referring to this as a "truly capitalist civilization" is Polyanna-ism at its whitest.

drwells's picture

Let's try an experiment. First, get so drunk that you find yourself losing arguments with inanimate objects. Now tell yourself the following. First, anyone who thinks that there was no need for you to get this drunk in the first place is a Polyanna who doesn't live in the real world. Second, anyone who believes that you're going to wake up in your own vomit with an apocalyptic headache is merely a gloomy Gus who subscribes to the "crime and punishment" model of reality and underestimates the recuperative powers of the human body. Third, if you just resume drinking every time God starts crashing the cymbals together inside your skull again, you can postpone the consequences indefinitely. No, really. I'm serious. Lie under the keg with the bung open so you can keep going even after losing all motor control.

Sure, after a few days the neighbors start to notice the smell and they find that you've drowned, but at least you had a damn good time. Bears never have this much fun.

Double down's picture

Thanks for saying that.  I have read him many times and I do not believe he supports lies any more than others.  And, he is funny, and as far as the direction of the market my hat is off to him.


Oh, and just wait one day like the rest of us he will be wrong.

Alienated Serf's picture

Brain washed tool of the elite establishment: Kostohryz graduated with honors from both Stanford University and Harvard Law School



AUD's picture

Dealing drugs is always lucrative. In fact drugs would have to be one of the most liquid markets of all & with such an awesome government induced margin. Though there has been some deflation in the evil weed market in recent years, due to indoor productivity increases.

How do I know this? Umm....errr....

tip e. canoe's picture

productivity increases primarily due to synthetic hormone technological advancements, i.e. emasculating america one toke at a time...