Lorraine Williamson
Why did Spain end November with its strongest unemployment performance since before the financial crisis? The latest figures reveal a labour market holding firm despite seasonal dips and global economic uncertainty—and hint at deeper structural shifts behind the headlines.
November is usually a tough month for employment in Spain. Seasonal roles wind down, especially in tourism hotspots, and winter hiring has yet to begin. Yet this year broke with that pattern. Registered unemployment fell by 18,805 people, leaving 2,424,961 jobseekers—Spain’s lowest November level since 2007, when the country was nearing the peak of its pre-crisis boom.
Economists say the broad-based decline is significant. While the service sector provided the largest push, other areas—industry, agriculture and construction—also saw their numbers fall.
Services lead the recovery, but gains spread across sectors
The Ministry of Labour described the drop as “solid across the board”, and the data backs that up.
-
Services:
down 13,013 people (-0.73%) -
Industry:
down 1,552 (-0.82%) -
Agriculture:
down 1,332 (-1.74%) -
Construction:
down 881 (-0.51%) -
People with no previous work experience:
down 2,027 (-0.88%)
On an annual basis, Spain now has 161,057 fewer unemployed people than in November 2024—a 6.23% year-on-year fall, showing that the trend predates this month’s seasonal boost.
Where unemployment fell—and where it didn’t
Improvements were recorded in eleven regions, though the momentum was uneven. Andalucia led with a sharp drop of 6,934, followed closely by the Community of Madrid. Other regions recorded mild decreases, but a handful saw slight increases—reminders that Spain’s labour market remains deeply regional, shaped by tourism reliance, agricultural cycles and industrial clusters.
Women and young workers make notable gains
Two groups that traditionally struggle in the labour market—women and young people—also showed improvement. Women registered their lowest November unemployment figure since 2007, signalling slow but meaningful progress in closing long-standing gender gaps. Youth unemployment fell 2.8%, a positive sign given that Spain’s under-25s remain among the most affected in Europe.
Social Security dip highlights seasonal volatility
Despite fewer people registering as unemployed, the number of workers affiliated to Social Security fell by 14,358 on average in November. The decline was mostly linked to the hospitality sector, which winds down after the summer season. Yet the long-term picture is strikingly different: Social Security has added 522,771 workers in the past 12 months, one of the strongest annual increases in a decade.
Economists say this contrast—short-term seasonal dips against a strong annual rise—suggests the labour market is expanding, even if monthly volatility remains.
Government says families “can breathe easier”
Labour Minister Yolanda Díaz welcomed the figures, saying “thousands of lives can now breathe a little easier”. The ministry highlighted the resilience of both the labour market and household incomes, arguing that employment growth is helping families navigate rising living costs.
Officials also stressed the symbolic weight of the data: November 2025 delivered Spain’s best November unemployment figures in 18 years, reinforcing claims that the economy is emerging from recent crises with greater stability than many expected.
What these numbers suggest for 2026
If the current trend holds, analysts expect steady—though modest—employment growth next year. Tourism remains a crucial pillar, but gains in industry and construction hint at a broader recovery. Policymakers will now watch whether winter hiring, typically slow until January, can maintain the momentum into the new year.
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