Lorraine Williamson
Spain’s labour market delivered a strong start to spring on Monday, with fresh official data showing the best March for job creation on record and the lowest unemployment figure for the month in 18 years. Spain´s March jobs figures show 211,510 more people in average Social Security employment than in February, while registered unemployment fell by 22,934 to 2,419,712.
That matters because March is often a good month for hiring in Spain, but this year’s jump was unusually strong. The Social Security system recorded 21,882,147 average affiliates in March, while the seasonally adjusted figure moved above 22 million for the first time. Ministers also highlighted the annual job growth of more than 524,000.
A record month, but not a simple one
The headline is positive. March brought the strongest monthly rise in employment ever recorded for that month, and unemployment fell to its lowest March level since 2008. The seasonally adjusted unemployment figure also dropped, down by 15,534.
But there is an important nuance. The much-publicised “22 million” mark refers to the seasonally adjusted count, not the raw monthly average. The average number of people affiliated to Social Security in March was 21.88 million, still a record for the month, but below that symbolic threshold. That distinction has already become part of the political argument around the data.
In a post on X, Pedro Sánchez celebrated the milestone, framing it as a historic moment for Spain’s labour market after seasonally adjusted affiliation moved above 22 million.
Semana Santa gave hospitality a clear lift
One reason for the March surge is timing. This year, Easter hiring landed in March rather than April, giving a clear boost to hospitality and other seasonal sectors. Reporting on the official figures said hospitality added almost 80,000 workers, making it the biggest engine of the month’s jobs increase.
That does not cancel out the good news, but it does help explain why March was especially strong. Spain’s labour market often gets a pre-Easter lift, particularly in tourism-heavy areas, and this year that effect arrived early enough to shape the month’s main jobs story.
Services led the fall in unemployment
The drop in registered unemployment was driven above all by the services sector, where joblessness fell by 18,852. Construction followed with a fall of 5,846, while industry was down by 1,482. Agriculture rose slightly by 365, and the group classed as having no previous job increased by 2,881.
That pattern fits the wider picture. Spring tourism, travel, and hospitality are helping drive hiring, while construction also remains relatively firm. It is a familiar Spanish mix, but the scale this March was larger than usual.
Women and younger workers also hit notable milestones
The new figures brought a few other records. Female employment reached nearly 10.4 million, the highest level in the series, while foreign workers in average affiliation passed 3.15 million for the first time. At the same time, youth unemployment for under-25s fell to 188,977, the lowest figure ever recorded for a March.
For ministers, those are among the most politically useful parts of the release. They point not just to headline job creation, but to a labour market that is broader and more inclusive than it was a decade ago, even if deeper structural problems have not disappeared.
Andalucía led the monthly improvement
Regionally, unemployment fell in 14 autonomous communities. The biggest monthly drops came in Andalucía, down 8,836, followed by Catalonia with 3,777 fewer unemployed people and the Valencian Community with a fall of 2,467. The only areas to see slight increases were the Canary Islands, Madrid, and the Basque Country.
That regional pattern is another clue to what is driving the data. Tourist-heavy and service-led economies did especially well, which again points back to Easter demand, travel activity, and spring hiring.
Permanent contracts remain a big part of the story
Spain also registered 1,311,070 contracts in March, up 12.4% on the same month last year. Of those, 576,532 were permanent, representing 44% of all contracts signed during the month. Officials also said the share of temporary workers has fallen sharply since before the labour reform, standing at 11.6% compared with 29.8% in March 2019.
That will matter to the government’s broader message. It is not only trying to show that more people are working, but that more of those jobs are stable. Critics may argue over definitions and seasonal timing, yet the official data still point to a labour market that remains resilient by Spanish standards.
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Why this matters beyond one strong month
March’s figures will give the government a welcome economic talking point at a time of wider political pressure. Still, one strong month does not settle the bigger debate about Spain’s economy. Much of the momentum came from services and Easter-related hiring, and the real test will be whether that strength holds once the seasonal bump fades.
For now, though, the message is straightforward. Spain has posted a record March for jobs, unemployment is at its lowest March level in nearly two decades, and the labour market has started the spring in better shape than many expected. Whether that turns into a lasting trend is the next question.