A waitress serves customers at a restaurant in the Andalusian capital of Seville. Spain’s output expanded by 0.8% in the third quarter from the second, the National Statistics Institute (INE) said, as household spending recovered more from its crisis levels.

Reuters
Madrid


Spain’s economy grew faster than most others in the eurozone from July to September, but turning the recovery into votes in the national election next month still looks like a struggle for Prime Minister Mariano Rajoy.
Output expanded by 0.8% in the third quarter from the second, the National Statistics Institute (INE) said, as household spending recovered more from its crisis levels.
But falling wages, job insecurity and an unemployment rate of 21% are still weighing on many families. With weeks to go until the December 20 vote, Rajoy’s centre-right People’s Party (PP) has made only modest gains in the polls.
The PP is still far off a majority in parliament after years of spending cuts and corruption scandals.
 “There’s no quality work to be had,” said Sergi, a cook who has been working in the picturesque walled city of Cuenca for the past six months. He declined to give his surname.
A veteran of hotels and restaurants from Madrid to Spain’s coastal regions, the 39-year-old said jobs in the sector were not lacking. Tourism accounts for around 11% of Spain’s output, and the best year on record in terms of foreign visitors has helped boost the number of jobs in restaurants, hotels and other parts of the service sector.
But many positions are temporary, and while salaries for head chefs reached over €1,800 ($1,910) a month as recently as 2010, they barely come to €1,000 now, he added.
Spain’s economy has rebounded from recession since mid-2013 thanks to an export boom and a consumer spending revival linked to falling unemployment. Rajoy’s government is credited with helping to stem job losses through a labour reform that gave companies more room to manoeuvre on salaries. But the reform has failed to tackle employers’ abuse of short-term contracts. The gap between Spain’s highest earners and its poorest is on the rise, economists say.
The rise of new parties in Spain, from leftist Podemos to market-friendly Ciudadanos, also presents a formidable challenge for Rajoy, and has made the election results all the more unpredictable.
Analysts do not rule out that the uncertainty could in the end play in the PP’s favour, however. In Britain, the Conservative Party won a surprise majority in May amid an economic upturn.
Carlos Barrera, a political communication professor at the University of Navarre, said the final weeks of the campaign would be decisive. “The big dilemma will be what inspires you most as a voter: a sense of security or a sense of excitement,” he said. The government said this week that economic growth had picked up pace again in October, and some businesses are more optimistic too.
Alberto Fernandez, who opened a bar two weeks ago in central Madrid, said he was already thinking of taking on extra staff at Christmas, as are many retailers.
His brightly lit, newly refurbished outlet and cheap nibbles appear to be luring customers even on a mid-week evening. The previous tenants closed their bar after only four months. But Fernandez said even his popular beer and tapas formula had its limits: “Spending more than 20 euros starts to become a bit of a stretch (for people).”