[Spain] High job creation leads to lowest unemployment since 2008

In Spain, newly released data has revealed that the unemployment rate fell to its lowest in 18 years in the fourth quarter of 2025, HR World reports.

Growth in service jobs and permanent contracts showed early signs of stabilising the country, which has been one of Europe's weakest labour markets.

Spain's jobless rate - 9.93 per cent last quarter - is the lowest since the 2008 financial crisis. However, it is still among the highest in the European Union.

Youth unemployment was also at its lowest level since the crisis, but according to the data, it remains high at 23 per cent.

Economists reportedly said that Spain's strong economic growth and a 2021 labour reform limiting the extent to which companies could hire workers on temporary contracts had started to chart a pathway towards consistently higher employment.

Its openness to immigration was another factor that plugged holes in key sectors for job creation, they said.

"Immigration sets us apart from other countries," Raymond Torres - from the think tank FUNCAS - said. "It has dynamised growth in sectors like hospitality and care, which otherwise would have encountered labour shortages."

Source: HR World

(Quote via original reporting)

In Spain, newly released data has revealed that the unemployment rate fell to its lowest in 18 years in the fourth quarter of 2025, HR World reports.

Growth in service jobs and permanent contracts showed early signs of stabilising the country, which has been one of Europe's weakest labour markets.

Spain's jobless rate - 9.93 per cent last quarter - is the lowest since the 2008 financial crisis. However, it is still among the highest in the European Union.

Youth unemployment was also at its lowest level since the crisis, but according to the data, it remains high at 23 per cent.

Economists reportedly said that Spain's strong economic growth and a 2021 labour reform limiting the extent to which companies could hire workers on temporary contracts had started to chart a pathway towards consistently higher employment.

Its openness to immigration was another factor that plugged holes in key sectors for job creation, they said.

"Immigration sets us apart from other countries," Raymond Torres - from the think tank FUNCAS - said. "It has dynamised growth in sectors like hospitality and care, which otherwise would have encountered labour shortages."

Source: HR World

(Quote via original reporting)