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The “very moderate” growth expectations for 2014, between 0.5% and 1%, will make it “difficult” for the unemployment rates to fall below the current 27%. This was the conclusion of the 2014 Economic Report of Barcelona-based ESADE, one of the top business schools in the world. The main author of the report stressed that this “slow and costly” growth should contribute only in a “very reduced” way to creating new jobs in 2014. However, he also explained that the Labour Market Reform would have positive effects on employment levels in the medium and long term. The study indicates that consumption in 2014 will “remain restricted” due to the high unemployment rates and reduced wages.

Next to the Spanish Prime Minister Mariano Rajoy (who went to the White House), the President of the United States, Barack Obama, did not talk about Catalonia despite being asked about it directly by a journalist. Obama did not repeat the formula expressed by other international leaders – it is Spain’s internal matter – but instead preferred to avoid the issue. He did not explicitly back the Spanish PM, despite the fact that Rajoy had stated, only a few minutes earlier, that “Catalonia’s independence will not happen”. Rajoy’s meeting with Obama and the following press conference at the White House were also controversial because the Spanish Government banned several media that were covering the trip and only allowed one Catalan newspaper to attend it.

Speaking to the Economic Affairs Committee of the European Parliament, the European Commissioner for Employment, Lázló Andor, said that Spain should profit from its decentralised organisation to help fight youth unemployment. He suggested that the rest of Spain’s Autonomous Communities should follow the examples of Catalonia and Navarra to improve employment levels among youngsters. The European Commissioner said that Spanish authorities should take note of the plans launched by Catalonia and Navarra, where the youth unemployment situation “is better than the national average”. However, despite these levels being lower than in most of Spain, youth unemployment in Catalonia is worryingly high, at more than 53% in July.

The Catalan Government has forecasted a 0.9% economic growth for 2014 in its budget proposal for next year, leaving behind the recession of 2012 (-1.2%) and 2013 (-1.1%). The positive figures are mostly due to the strength of the export sector – which will continue to improve its results. The main factor slowing down growth will be the internal demand, which will continue to decrease although it will do so at a lower pace. In addition, the Catalan Executive believes the unemployment rate will decrease and reach 23.1% by the end of the year. It is expected 2013 will end with a 23.7% unemployment rate, higher than the 22.6% rate registered at the end of 2012.

However, in annual terms, Catalonia registered a fourth consecutive drop in unemployment figures with a 1.93 % decrease compared to October 2012 and 12,474 fewer jobseekers. By the end of October 2013, 633,832 people were registered as unemployed at the offices of the Catalan Public Employment Service (SOC), meaning a 2.08% increase since the month of September, with 12,921 extra people unemployed. These latest figures, which were released by the Spanish Ministry of Employment and Social Security, also indicate a third consecutive month of growth in unemployment. In the whole of Spain, registered unemployment also increased for the third consecutive month.

This October, prices are 0.1% cheaper than they were a year ago, in October 2012, according to the advanced inflation rate released by the Spanish Statistics Institute. If this is confirmed, annual inflation rate would have gone from +0.3% in September to -0.1% in October. Prices of food and non-alcoholic drinks fell and the increase in university education fees was slight. Last year, university tuition fees doubled as one of the austerity measures adopted to reduce public deficit. Regarding monthly changes in the overall inflation rate, prices increased by 0.4% between September and October.

In Catalonia, the unemployment rate decreased by 32,500 people to reach 22.84%. The Spanish Labour Force Survey has recorded two consecutive semesters of decrease in the unemployment figures after new highs had been reached in early 2013. Catalonia is currently leading the country in terms of unemployment reduction: on the Spanish Scale, the latest figures indicate a drop in 72,800 people while the rate is set at 25.98%.

At Spanish level, unemployment increased both in monthly and annual terms. Catalonia is the Autonomous Community with the largest annual unemployment drop in absolute terms and the second highest in relative terms. The number of people registered as unemployed in Catalonia at the end of September dropped by 11,546 individuals compared to figures from a year ago, representing a 1.83% annual decrease. However, in monthly terms, registered unemployment increased by 1.51%, with 9,243 more jobseekers. September is a month with a traditional unemployment increase due to the end of summer season contracts. Last September’s unemployment increase was the lowest since 2008.

Following a decade of significant increases in the amount of foreign nationals in Catalonia, it appears that many are beginning to leave as job opportunities dry up. In 2000, the percentage of foreign nationals living in Catalonia was 2.9%, while just over a decade later in 2011 this figure had increased to 15.73%. However, in the past couple of years the amount is beginning to reduce: between 2009 and 2013, 44,000 foreign nationals left Catalonia. According to the Spokesperson of non-governmental organisation SOS Racisme, Jose Peñín, immigrants are leaving as “they have less stable contracts and work in more abusive conditions”.

The General Workers Union (UGT) issued a report stating that the Catalan economy experienced 567,099 job losses between 2007 and 2013. The figure represents a reduction of 16.86% on the total number of jobs that existed in Catalonia 6 years ago. While presenting the report, the UGT’s Secretary for Union Policy, Camil Ros, warned that figures do not show “a recovery of job creation”. Ros criticised the Spanish Government for “lying” and presenting macroeconomic figures in a way that “do not correspond to reality” since there are no signs of economic recovery. “At most, the job reduction has slowed down [its pace]”, he added.

According to a figures released by the Spanish Institute of Statistics (INE), Catalonia’s annual inflation rate fell from 2.6% to 2.1% between June and July. This is the second lowest annual inflation rate that Catalonia has experienced this year, with the lowest being during April when the figure was 1.8%. July’s annual inflation rate in Catalonia is higher than that of the whole of Spain, which is set at 1.8%. The main reason for this fall on last year’s results can be explained because of the lower rate of increases in electricity prices (compared to last year’s rise), as well as the end of the statistical effect of the pharmaceutical co-payment, which was implemented in July 2012 and significantly raised the consumer price of drugs.

By the end of July there were 6,859 fewer people registered at the Catalan Public Employment Service (SOC) than a month ago, which leaves the total number of registered unemployed individuals at 610,429. The current amount of jobseekers is now the same level as September 2011. Unemployment levels have been decreasing in Catalonia for the last five consecutive months. In addition, last July’s drop is the most significant reduction in this month of the year since 2010. In the whole of Spain, the unemployment rate decreased by 1.36%, with 64,866 fewer people registered at the Public Employment Service offices. This means that by the end of July there were 4,698,814 individuals registered as unemployed in Spain. The Catalan Government states that, if the trend is kept during the second semester, the economic crisis would have reached “its lowest level” earlier this year.

By the end of June, there were 873,000 people in Catalonia without work and looking for employment, according to the latest Active Population Survey (EPA). This represents 29,300 fewer individuals than 3 months ago, which is the highest unemployment reduction in the second quarter of the year since 2002. However, employment levels have only increased by 11,800 people, which means that this year Catalonia has experienced the lowest increase in job creation for this period of the year since 1998. The Catalan unemployment rate is now 23.85%, while the Spanish average is 26.6%. In the whole of Spain, the number of people unemployed decreased by 225,200, which means that the total number of unemployed people is now below the psychological landmark of 6 million individuals (5,977,500).

The Catalan Parliament has devoted a two-day plenary session to debate the youth unemployment problem and how it could be reduced. According to the latest Active Population Survey (EPA), the youth unemployment rate in Catalonia reached 52.7%. This means that 1 out of 2 youngsters between 16 and 24 years old who want to work cannot find a job. Around 151,000 youngsters are unemployed in Catalonia; 64% of them worked in the service sector and 17% have never worked. The Catalan President, Artur Mas, asked to manage the proportional share of the European Union’s funds allocated to fight youth unemployment in Spain, since the Catalan Executive holds the competences.

Registered unemployment in Catalonia decreased by 3.87% in June compared to the previous month’s figures. June is a month when unemployment tends to be reduced due to summer jobs, but last month registered the highest drop since 1996. The total number of people registered as unemployed at the Catalan Public Employment Service (SOC) by the end of June reached 617,288 individuals. However, compared to a year ago, registered unemployment increased by 1,712 people, 0.28% more than in June 2012. In the whole of Spain, registered unemployment also increased in annual terms (+3.2%) and decreased compared to a month ago (-2.6%). Catalonia is the Autonomous Community where unemployment decreased the most in monthly terms. Furthermore, in the Lleida Province (Western Catalonia), unemployment also decreased in annual terms.