Investigating Variations in Unemployment Between North and South Spain and Associated Implications

Session: (In-Person) Poster Presentation

Unemployment in Southern Spain has long been significantly higher than in Northern Spain, negatively affecting Spain’s national unemployment rate. This has caused Spain to have one of the highest unemployment rates in the EU, making it a target for sanctions and corrective policies which further isolate it from the international community. The regional difference has previously been explored through purely quantitative methods and is widely attributed to a deficit in industrial output or a cultural aversion to work. The purpose of this research is to use a combination of quantitative decomposition through regression and various historical, policy, and geo-sensing sources to determine correctable factors which may contribute to unemployment and areas where further development may attract industry and workers. The regression model suggests that regional differences in industrial output and overall age have insignificant effects on unemployment, while education, working age, and population have significant effects. Sensing suggests the South may lack not only employment opportunities but the necessary infrastructure to support the desired growth. To improve employment rates in Southern Spain, education and youth employment must be better supported, and infrastructure and resources must be improved to allow for growth in all sectors of industry.