Changes

Other areas of economic activity within the service sector were also particularly hit, registering sharp rises in unemployment that will likely prove difficult to reverse after the return to ‘new normal life’. The

non-food retail sector, which was forced to close during the state of alarm, is one such example. The shutdown and decrease in families’ disposable income caused by the rise in unemployment utterly reduced revenues, leading to the closure of businesses and further job losses.

The increase in the unemployment rate in the first quarter of 2020 was well widespread throughout Spain. The regions that had the highest unemployment rate in 2019, which were Andalusia (Andalucía), the Canary Islands (Canarias) and Castile–La Mancha (Castilla–La Mancha), continued to hold this position in 2020. The same evolution was observed in the unemployment rate amongst the under 25s.

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