Spain’s unemployment rate drops to lowest level in 18 years

Spain’s unemployment rate fell below 10% in the second quarter of the year, reaching its lowest level since 2008, as seasonal hiring during the summer period pushed employment to a historic high, according to data released by the Spanish National Statistics Institute.

The data showed the number of employed people climbed to 22.779 million after 486,000 jobs were added between April and June, Caliber.Az reports, citing Euronews.

Meanwhile, the number of unemployed people declined by 213,300, bringing the unemployment rate down to 9.87%.

The surge in employment coincided with the beginning of the summer season, which traditionally brings a wave of hiring, particularly in the services sector.

The labour force also expanded during the quarter, rising by 272,700 people to a record 25.27 million, reflecting both stronger employment levels and a growing number of people entering the job market.

The services sector generated the majority of new positions, largely driven by increased tourism activity. Construction and industry also recorded employment gains, while agriculture was the only sector to experience a decline in the number of workers.

Catalonia registered the largest increase in employment in absolute numbers, while the Balearic Islands saw the biggest percentage rise.

The employment growth was concentrated mainly in salaried and full-time positions. Nearly three-quarters of employees now hold permanent contracts, while temporary employment continued to decline, especially in the private sector. Of the 486,000 new jobs created, 405,400 were full-time positions.

Private-sector employment rose by 501,600 during the quarter, offsetting a decline of 15,600 jobs in the public sector. After adjusting for seasonal factors, employment increased by 0.54% compared with the previous quarter.

The latest figures put Spain only 221,000 jobs away from the government’s target of reaching 23 million employed people by the end of 2026. Economy Minister Carlos Cuerpo announced the goal in February 2025, based on expectations that employment would grow by around 500,000 positions annually.

By Bakhtiyar Abbasov