NPR–What Went Wrong In Spain But Why It Isn't Greece

With the sudden drop in construction here, jobs disappeared. This shows another problem with a growth model built on construction: Employment swings up and down dramatically.

Professor JOAQUIN ARANGO (Director, Center for the Study of Migration and Citizenship, Ortega y Gasset Foundation): The Spanish economy is labor intensive.

GJELTEN: Joaquin Arango, of the Ortega y Gasset Foundation, points out that the economic boom in Spain brought more people into the workforce but mostly in low skill areas, like construction. A lot of the jobs could be filled by foreign-born workers. Arango, a sociologist, has documented the surge in the immigrant population that began with the economic boon in the last 1990s.

Prof. ARANGO: As a percentage of the population, at the beginning of that period, was two and a half percent or so. And now it is over 12 percent.

GJELTEN: Thats dramatic.

Prof. ARANGO: Yeah, spectacular.

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Posted in * Economics, Politics, * International News & Commentary, Economy, Europe, Housing/Real Estate Market, Labor/Labor Unions/Labor Market, Politics in General, Spain, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--