Record growth for Spanish job market in June

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job market
ASSSA

The Spanish job market continues to perform strongly, with a remarkable increase of 71,100 new contributors to social security, bringing the total to a historic high of 21.39 million.

This data reflects a continuous positive trend, marking 50 consecutive months of employment growth when adjusted for seasonal effects. The number of unemployed has dropped below 2.6 million, a level not seen since August 2008, primarily driven by the services sector.

Boost from Tourism

June is traditionally a strong month for the Spanish labour market due to tourism. This year, nearly 17,000 more jobs were created compared to June 2023, highlighting the dynamic nature of the Spanish job market. Over the past year, a total of 523,000 new affiliates have joined, with a renewed impetus in the last two months. The annual employment growth rate rose to 2.51%, an improvement from 2.36% in April.

Growth Across Sectors

Employment grew across almost all sectors and regions in Spain. The hospitality sector saw the largest increase, with more than 32,000 new employees, similar to last year. The administrative and support services sector also showed strong growth, with nearly 28,000 new employees. That´s 6,000 more than in June last year. The public sector, excluding education and healthcare, added nearly 13,000 new social security contributors, one of the highest registrations in June.

Exceptions in Employment Growth

The only negative aspect in June was the education sector, which lost 51,600 jobs, a usual trend at the end of the school year. This decline is consistent with previous years, as many Spanish teachers without permanent contracts are temporarily unemployed during the summer months when schools are closed.

Regional Variations

The Balearic Islands registered strong employment growth with more than 19,000 new affiliates, a 3.1% increase compared to May. Extremadura, Castilla-La Mancha, and Aragón also showed significant employment growth, each with monthly advances of more than 1%. Conversely, Andalucia, Murcia, and La Rioja saw a decrease in employment.

Declining Unemployment Rate

The number of registered unemployed decreased by nearly 47,000 in June, slightly less than last year and pre-pandemic June months. This slow decline is attributed to better unemployment benefits and a growing workforce due to immigration. The number of unemployed fell to 2.56 million, the lowest since August 2008, continuing the milestone reached in May.

Temporary Contracts

However, there was a 10.1% decline in permanent contracts compared to the previous year, with the most significant decreases seen in fixed-term and full-time contracts. Temporary contracts still make up the majority of new hires, representing 58.85% of the total contracts signed in June.

Also read: Unemployment in Spain at lowest point since 2008 in May

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