Simply Economics, from Mexico

Spanish Labor Market Shows Signs of Recovery, Bolivia’s Economic Crisis Deepens

The Spanish labor market opens the summer season with 71,000 new workers and 47,000 fewer unemployed. Meanwhile, Bolivia's economy fuels distrust in Arce and his version of a 'failed coup'. Simply Economics covers the improving health of the labor market in Spain and the deepening economic challenges in Bolivia, providing valuable insights into the potential impact on the respective countries' economies.Sources:https://elpais.com/economia/2024-07-02/el-mercado-laboral-abre-la-temporada-de-verano-con-71000-nuevos-trabajadores-y-47000-parados-menos.htmlhttps://www.sinembargo.mx/01-07-2024/4520665Outline:(00:00:00) Introduction(00:00:40) The labour market opens the summer season with 71,000 new workers and 47,000 fewer unemployed(00:04:01) Bolivia's economy fuels distrust in Arce and his version of a "failed coup"

Duration:: 7m
Broadcast on:: 02 Jul 2024
Audio Format:: mp3

The Spanish labor market opens the summer season with 71,000 new workers and 47,000 fewer unemployed. Meanwhile, Bolivia's economy fuels distrust in Arce and his version of a 'failed coup'. Simply Economics covers the improving health of the labor market in Spain and the deepening economic challenges in Bolivia, providing valuable insights into the potential impact on the respective countries' economies.

Sources:
https://elpais.com/economia/2024-07-02/el-mercado-laboral-abre-la-temporada-de-verano-con-71000-nuevos-trabajadores-y-47000-parados-menos.html
https://www.sinembargo.mx/01-07-2024/4520665

Outline:
(00:00:00) Introduction
(00:00:40) The labour market opens the summer season with 71,000 new workers and 47,000 fewer unemployed
(00:04:01) Bolivia's economy fuels distrust in Arce and his version of a "failed coup"

Good morning and welcome to Simply Economics from Mexico. It's Tuesday, July 2nd. On today's show, the labor market opens the summer season with 71,000 new workers and 47,000 fewer unemployed. Plus, Bolivia's economy fuels distrust in our and his version of a failed coup. This coverage and more, up next. I'm David and you're listening to Simply Economics from Mexico. We start off with some positive news from the Spanish labor market, which is showing strong signs of growth as the summer season begins. According to the latest figures, employment increased by 71,000 in June, bringing the total number of Social Security affiliates closer to 21.4 million. At the same time, unemployment fell by 47,000, reducing the total number of unemployed to 2.5 million, the lowest figure for this month in 16 years. For more on this, we turn to our economics correspondent, Bella. Can you give us some context on these numbers and what they mean for the Spanish economy? Absolutely, David. These figures demonstrate the continued resilience and strength of the Spanish labor market. The increase in Social Security affiliates to a record high of nearly 21.4 million indicates that more people are entering the workforce and finding employment. This is particularly significant given the challenges posed by the COVID-19 pandemic in recent years. The simultaneous drop in unemployment to 2.5 million, a 16-year low for the month of June, further underscores the positive trajectory of the job market. What factors do you think are contributing to this positive trend in employment? There are a few key factors at play here. First, the start of the summer season typically brings a boost in hiring, particularly in tourism-related sectors, which are a major part of the Spanish economy. As travel restrictions have eased and people are more comfortable taking vacations, businesses in hospitality, retail, and other services are staffing up to meet the increased demand. Additionally, the education sector tends to see a bump in June as schools prepare for the end of the academic year and summer programs. How does this compare to the labor market situation in other European countries? Spain's performance is certainly noteworthy in the European context. While many countries in the region are also seeing improvements in their job markets as they recover from the pandemic, Spain's growth in employment and reduction in unemployment stand out. This is especially impressive considering that Spain was one of the hardest hit countries during the early waves of COVID-19 and faced a more challenging road to recovery. The fact that the labor market has not only rebounded but reached new heights is a testament to the effectiveness of the government's support measures and the resilience of Spanish businesses and workers. Looking ahead, what is the outlook for the Spanish labor market in the coming months? The outlook appears quite positive, David. With the summer tourism season now in full swing, we can expect the job market to maintain its momentum in the short term. Of course, there are always potential headwinds to watch out for, such as rising inflation or geopolitical risks that could impact the global economy. However, the Spanish government has demonstrated its commitment to supporting workers and businesses through various policies and initiatives. As long as the recovery continues and demand remains strong, there is reason to be optimistic about the prospects for further job growth and stability in the Spanish labor market. Thank you, Bella, for your insights on this encouraging news about the Spanish job market, the record-breaking employment figures and 16-year low in unemployment for June certainly bode well for the economy as the summer season gets underway. In contrast, Bolivia is facing an economic crisis fueled by a shortage of U.S. dollars and political infighting. Joining us now with more details is our correspondent in La Paz. Can you describe the situation on the ground and how it's impacting everyday Bolivians? The effects of the dollar shortage are being felt acutely by many Bolivians, especially small business owners. I spoke with Victor Vargas, a shoe store owner in a popular open-air market. Just a few years ago, customers would line up outside his store in the morning to buy imported sneakers, but now his store sits nearly empty. Signs that say, "I buy dollars, line the doors in a desperate attempt to keep his family business afloat." Bolivia has long had an over-dependence on the U.S. dollar. How is that contributed to the current crisis? Bolivia's economy is highly dollarized, with many goods and services priced in dollars. The country also relies heavily on imports, which require dollar reserves. So when there's a shortage of dollars in the system, it sends shockwaves through the entire economy. Businesses struggle to import goods, prices rise, and economic activity slows. This dependency has left Bolivia vulnerable to the current turmoil. President Luis Arche has downplayed the severity of the crisis, insisting that Bolivia's economy is still growing. What's behind this messaging from the government? There's a deepening political rift between President Arce and his former ally, ex-President Eva Morales. The two are locked in a dispute for control of the ruling party, ahead of next year's presidential elections. Many analysts believe Arce is trying to project an image of stability and growth to shore up his political position. But this has led to a growing distrust among the Bolivian people, many of whom are feeling the pain of the crisis firsthand. The political tensions reached a boiling point this week with an apparent show of force by the military in La Paz. What can you tell us about that incident, and what it says about the state of affairs in Bolivia? On Wednesday, soldiers with armoured vehicles deployed to the seat of government in La Paz in what the Arce administration called a failed coup attempt. Details are still murky, but the incident underscores the fraught political environment and the high stakes ahead of next year's elections. It's a troubling sign in a country with a history of political instability. For now, everyday Bolivians are left to grapple with the economic fallout as the political drama unfolds, a precarious situation indeed. Thank you for your reporting and for bringing us this update from Bolivia. We'll continue to follow this story as it develops. And with that, we wrap up our stories for today. Thanks for listening to Simply Economics from Mexico. We'll see you back here tomorrow. [Music] [BLANK_AUDIO]