986-1990. It also has been categorized by the large reduction in employment in 1992 during the following economic deceleration. About two million new jobs were created during the economic expansion, which amounts to a growth rate of 3% per year. About a 1,100,000 people took advantage of this situation and entered the labor market during this period and 896,000 of them were women. Also during this period, the average wage increase was 7.4%, compared to an average inflation rate of 6.5%. However, during the 1991-1992 economic deceleration period, production grew by 1.75% in real terms while employment decreased by an average of 0.85%. Wages increased by an average of 8.5%, which goes to show a decline in job creation that goes with the increasing expense of the work factor and its replacement by capital. A fixed production factor was labeled to the high wage claims in 1990 which failed to have an immediate impact in the reduction of employment. This continued through 1991 and 1992, where high wage demands continued among the labor force, which forced companies to reduce the size of their staff. The development of wage increases is important to the Spanish government, and in an attempt to keep up with the European Community wages, a wage increase of 2% was set for public sector employees in 1993. The rate of unemployment still remains high as it has been for most of this century. At 21.3%, the unemployment rate is considerably higher than the average unemployment rate of the European Community, which is just above 10%. While governmental spending had tremendously increased between 1986-1990 to assist the slightly expansionist growth, spending slowed down in 1991 in order to balance the spending out when the growth was neutral, instead of expansionist or restrictive. In 1985, non-financial state spending was 21.6% of GDP while rising to 23.2% of GDP in 1989. It remained pretty much at more or less the same level up to 1991 when i...
