Spain's Unemployment Rate Falls to Lowest Since 2008 in Q2

Unemployment rate in Spain fell to 9.87%, its lowest level since 2008, in the second quarter of the year.

According to the Spanish National Statistics Institute (INE), the number of people in work rose to 22.779 million, after 486,000 jobs were created between April and June. At the same time, unemployment fell by 213,300 people, pushing the jobless rate down below 10%.

The increase in employment coincided with the start of the summer season, a period traditionally favourable for hiring, especially in services. The labour force also grew over the quarter, increasing by 272,700 to a record 25.27 million people, reflecting an increase both in employment and in the number of people seeking to enter the job market.

The services sector accounted for most of the new jobs, driven by tourism activity, although construction and industry also made gains. Agriculture, by contrast, was the only sector to lose workers during the period.

Catalonia recorded the largest increase in employment in absolute terms, while the Balearic Islands posted the strongest percentage growth.

Employment growth was concentrated in salaried and full-time work. Almost three quarters of employees now have permanent contracts, and temporary work kept shrinking, particularly in the private sector. Full-time positions accounted for 405,400 of the 486,000 jobs created.

Private-sector employment increased by 501,600 during the quarter, while public-sector employment fell by 15,600. In seasonally adjusted terms, employment grew by 0.54% from the previous quarter.

The latest figures leave Spain just 221,000 jobs short of the government’s forecast of 23 million people in work by the end of 2026. Economy Minister Carlos Cuerpo set out the milestone in February 2025, based on projected employment growth of around 500,000 people a year.