Employment in Spain surpasses 22 million for the first time, marking a historical milestone, and unemployment decreases to 10.29%, a figure not seen since 2008.
Spain Reaches Record-Breaking Employment High in Q2 2025
Spain's labour market has made a remarkable comeback, surpassing the 22 million jobs milestone in the second quarter of 2025. This unprecedented figure marks a significant leap from the previous record set in Q2 2023.
The employment growth was driven by a variety of factors, including a robust job creation spree, a declining unemployment rate, and regional job growth.
Job Creation
Over half a million new jobs were created in Q2 2025, with the services sector leading the way, accounting for approximately 364,800 of these new positions. The industry, construction, and agriculture sectors also contributed positively, with 90,300, 45,400, and 2,800 new jobs respectively.
Declining Unemployment Rate
Spain's unemployment rate dropped sharply to around 10.3% in Q2 2025, the lowest since 2007–2008. This decline resulted in 236,000 fewer unemployed people compared to the previous quarter, with both male and female unemployment decreasing significantly.
Regional Job Growth
Autonomous communities such as Catalonia and the Balearic Islands showed remarkable employment increases, supporting the national trend. Catalonia alone added nearly 94,600 jobs in Q2 2025.
Economic Momentum
The labour market rebound has boosted Spain's GDP growth to 1.1% quarter-on-quarter, buoyed by robust domestic demand and consumer confidence reaching 82.5. Positive PMI readings above 51 in manufacturing and services further bolstered this growth.
Demographic Support through Immigration
Immigration has played a crucial role in offsetting demographic challenges by supplying labour to workforce-intensive sectors like construction, tourism, and renewable energy.
Age and Gender Breakdown
The number of employed people aged 55 and over (+120,000) and young people aged 20 to 24 (almost 100,000 more) increased significantly in the second quarter. The majority of new jobs (seven out of ten) were registered in the services sector.
Youth and General Unemployment Rates
The youth unemployment rate continues to decrease, falling by more than two points on an annual basis to 24.5%. The general unemployment rate also continues to decline and is now at 10.29%, with a reduction of more than one point compared to the previous quarter.
Geographical Distribution of Unemployment
The unemployment rate in the Community of Madrid decreased by -51,800 in the second quarter, while the largest increase was recorded in Castilla-La Mancha and the Autonomous Community of Navarre (2,000 more in each).
Historical High for Both Men and Women
The number of employed people in the second quarter reached a new historical high for both men (11,878,400) and women (10,390,300).
Unemployment Lists and Household Unemployment
A total of 236,100 people left the unemployment lists in the second quarter, although the reduction was not as pronounced as in previous years. The number of households with all members unemployed decreased by 86,100 to 796,900 people in the second quarter.
Total Unemployed People and Unemployment Rate
The total number of unemployed people in June was 2,553,100, a decrease of 202,200 people compared to the same period last year. The unemployment rate is at 10.29%, the lowest since 2008.
[1] Source: National Statistics Institute (INE) [2] Source: Ministry of Employment and Social Security [3] Source: Autonomous Communities' Labour Departments [4] Source: European Union Labour Force Survey (EU-LFS)
The growth in employment in Spain led to a decline in the average unemployment rate to 10.3% in Q2 2025, the lowest since 2007–2008, as indicated by the National Statistics Institute (INE). The boost in employment also positively impacted the finance sector, as the average unemployment rate reduction chances to lower the unemployed population receiving social security benefits from the Ministry of Employment and Social Security.
