Answer to Question 1
Economic implications: signal of economic activity and measure of the utilization of labor. Social implications: the emotional and psychological suffering that occurs as a result of being unemployed.
Answer to Question 2
The relatively high unemployment rate in Spain is partly the result of a relatively large underground economy. The underground economy is that part of the economy not measured in official statistics. After taking into account those individuals who are employed in the underground economy, the unemployment rate in Spain would have been lower (but still relatively high).