That is higher than many Third World Countries. Nearly 30% of the Adult work force can not find employment. This is just Absurd. The Government of Spain needs to change its form of Government.
I was in Spain for several months there are are no massive closing of shops. No hoards of beggars on the streets. The Euro has held the country up. The restaurants are all open and serving small portions at high prices. There are NO real estate deals on houses. There are NO parking spaces for cars on public streets after 10 a.m. the Spanish would die before paying for parking. They go to work at 10 a.m. take a 2 hour lunch break and work to maybe 6 pm. Shoe stores still selling snickers for $150. There is no plague in Spain. Sorry it is not there.
As I said before, the Spanish love the dolce vita, or in this case, the dulce vida, and are willing to scrimp on some things to have others. It that means having two suits or two dresses, so be it. Given gas costs a fortune, they never fill their tank, only buy enough to get by. They'll also live on as many free tapas a few cañas will get them.
From the viewpoint of the current shareholders of SAN, the 27% unemployment in Spain IS HIGHLY LIKELY TO IMPROVE and decline to about 20% by the yearend. For it is much easier to reduce a 27% unemployment rate than a 8% rate.
Since most of the unemployed are young people, who are usually more mobile than older people with families, there is a good probability that some will begin to move to other countries in the EU (E.G., Germany, Sweden, etc.) where the economies are expected to recover but need new workers to do so robustly.
In fact, conspiracy theories in the EU claim that the high unemployment in Spain is intended to create population movement towards industrial centers in northern Europe to avoid importations of Turkish, Arab, or African laborers. Naturally, such theories may be far fetched but they are probably based on some real underlying conditions in northern Europe's labor markets.
As for SAN shareholders, we can wait for improvements in Spain's unemployment while collecting the SUBSTATIAL DIVIDENDS that SAN pays.
Sentiment: Strong Buy
Now wait a minute, we don't count them diabeleds as unemployed and we don't count all those drug dealers not looking for work. Gotta love this country, always trying to make us feel better than we should.