After several decades of unemployment, the country has made efforts to turn the economy around, but after the recent recession, unemployment reached a record high of 18.1%. Rigid labor regulations and generous unemployment benefits contribute to the grim unemployment situation. Additionally, high unemployment benefits tend to lead to higher wages, discouraging businesses from hiring more people. Another reason for high unemployment is its rapid modernization, which leads to a decline in employment in the agricultural sector and other basic industries. Role in international trade Spanish agriculture provides around 3% of its gross domestic product. It produces wheat, sugar beets, barley, tomatoes, olives, citrus fruits, grapes and cork. It is the world's largest producer of olive oil, lemons, oranges and strawberries and the third largest producer of wine. Spain has limited mineral resources. The manufacturing industry is dominated by textiles, industrial food processing, steel, naval machinery and engineering. Having become the second largest tourist destination in the world, this translates into the largest source of income. Business