The labor market in Spain broke a new ceiling this summer, reaching 22.4 million workers, according to the results of the third quarter of the Active Population Survey (EPA). Specifically, the new historical maximum stood at 22,387,100 employed people, after adding 118,400 workers. The bittersweet point is that unemployment increased by 60,100 people, a rare increase for this time, but one that has been recorded in recent years linked to the continued strong increase in the active population (willing to work), which reached the historical maximum of 25 million people.
Thus, the balance of the third quarter of the year left an increase in employment by 118,400 people compared to the previous quarter and unemployment increased by 60,100 people, bringing the total to 2,613,200. The unemployment rate increased to 10.45%, 17 hundredths more than in the previous year.
The increase in employment in the third quarter is somewhat lower than that recorded in recent years, although it must be taken into account that it still shows significant dynamism while the labor market is at historic highs in the number of workers.
The President of the Government, Pedro Sánchez, has highlighted that “today Spain once again demonstrates its strength with a new employment record: 22.4 million people working.” The Minister of Economy, Carlos Body, has also celebrated that “the good news continues” in terms of employment, and the Second Vice President and Minister of Labor, Yolanda Díaz, has stressed that “today there are more people working than ever and, above all, they are doing so under better conditions.”
If we look back twelve months, employment has grown by 564,100 people in the last year, maintaining a strong creation rate of 2.6%, well above last year (1.8%). Of them, 338,600 were Spanish people and another 225,500 were foreigners, the latter playing an important role in the increase in employment at this time in Spain.
In addition, the reduction of temporary work continues to advance after the labor reform, with an increase in permanent workers of 530,600 people compared to 2024, to a maximum of 16 million people, while temporary workers were reduced by 87,900, to a total of just under three million people.
The temporary employment rate this quarter, however, increased slightly, to 15.6%, since summer is a time of year when more temporary jobs are recorded, for example to replace vacations and for specific parties and celebrations, among others.
The Ministry of Economy highlights that the temporary employment rate in the private sector is “just under 13%”, “in values similar to the European average, and 11.7 points below its value before the labor reform”, the Ministry of Labor also highlights. On the other hand, although it is also decreasing, temporary employment in the public sector remains very high, at 27% in this third quarter (28.6% the previous year), very far from the 8% commitment that Spain acquired with Brussels.
The number of self-employed workers decreased by 10,500 people, much less than in 2024 (87,800 people). In the last year, self-employed workers – now the focus of information due to their Social Security contributions – have increased by 122,400 people, an increase of 3.9%, well above the general figure (2.6%).
What boosted employment this summer was the private sector, with 107,600 more workers (up to 18.9 million), while public employment added 10,800 jobs, up to a total of 3.5 million public personnel.
By sectors, the boost in employment in the industrial sector stands out, with 64,100 more workers (compared to 23,400 in 2024), above Services, which usually lead the increase and which on this occasion registered a very small increase (39,100 jobs, compared to 152,700 last year). Construction added 32,600 jobs (500 in 2024) and agriculture fell by 17,400 workers, a better performance than last summer, with 38,300 fewer workers.
By region, in relative terms, the community in which employment increased the most in summer is the Balearic Islands (+4%, 26,200 people), followed by Castilla-La Mancha (`+2.2%, 19,900 people) and Andalusia (+1.85% and 65,500 people). In the last year, the employment push has been led by La Rioja (+7%, with 10,100 more workers), the Valencian Community (+5%, 116,600 people) and Andalusia (+3%, 108,800 workers). The following map shows the data by province.
2.6 million people unemployed
On the unemployment side, possibly the most relevant pending issue in Spain’s labor market, the increase of 60,100 unemployed people in summer is not usual for this time of year, as seen in the following graph. However, it is being repeated in recent years of economic growth in which the active population is growing a lot, with people entering the labor market willing to work.
Another indicator that indicates that a large part of unemployment is linked to the incorporation of new workers into the labor market is that unemployment increased by 49,400 among people looking for their first job, indicates the INE. Good news is that unemployed people who have been looking for work for more than a year, the so-called long-term unemployment, decreased by 53,000 people in the third quarter to 938,500 people. They are 86,500 less than the previous year.
By sex, the number of unemployed men decreased by 22,600 this quarter, while the number of women increased by 82,700, a difference by gender that is not unusual for this period of the year. However, the expanded image of the last year is more worrying.
In the last 12 months, the total number of unemployed fell by 140,900 people, of which 123,200 were men and only 17,800 women. They maintain higher unemployment figures, with 1.4 million unemployed women (with a rate that increases this quarter to 12%), while there are just under 1.2 million unemployed men, with a rate of 9%.
Households with all their active members unemployed decreased by 6,100 this quarter, to a total of 790,800.
Maximum of 25 million people willing to work
The active population grew by 178,500 people in the third quarter and reached a new historical high of 25 million people willing to work. The number of active women increased by 94,000 and that of men by 84,500. By nationality, the number of active workers increased in summer by 140,100 people among Spaniards and by 38,400 among foreigners.
The expansion of the labor market has been very notable in recent years. In the last year, the active population has increased by 423,100 people, much more than the previous year, with an increase of 236,100 people at this time in 2024.
Spain’s challenge in this context of growth is to provide employment and opportunities to all the people who join the labor market, so that they do not join the unemployment lists. The Ministry of Economy, led by Carlos Corpo, highlighted this Friday that the occupancy rate also reached “a record, rising to 68.6%.”
Source: www.eldiario.es
