OCR F585 June 2011: A Brain Drain from Spain?

High unemployment, declining real wages and worsening employment prospects might be causing a surge in net migration out of the Spanish economy. The economic and social consequences of high unemployment figures prominently in the OCR F585 stimulus material for the June 2011 exam. One in five under the age of 30 in Spain is unemployed, and a staggering 64% of those age 16 to 19 are unemployed. Youth unemployment rates in Spain are higher than both Egypt and Tunisia

Official data shows that 118,000 people left the country in the two years to April 2010 - many of them heading to Germany where economic growth is strong and unemployment rates are falling. There is also growing evidence of younger Spaniards heading to Latin America. 30,000 Spaniards moved to Argentina between June 2009 and November 2010 — an 11 per cent increase over that period. Some 6,400 went to Chile — a jump of 24 per cent in the same timeframe — and 6,800 headed for Uruguay, an increase of 16 per cent.

If the brain drain effect gathers momentum consider some of the possible consequences for the Spanish economy.

Canadian Press: Portuguese, Spaniards seek new lives in old colonies as they face dead-end future at home

Spanish jobless level hits another record high (April 29th)