Lorraine Williamson
Spain’s labour market is facing challenges at the start of 2025, with a notable rise in unemployment and job losses across several sectors. The Spanish labour market 2025 is under increasing pressure, according to the latest data from the Spanish National Institute of Statistics (INE).
The country’s unemployment rate climbed to 11.36% in the first quarter, marking the worst employment performance in over a decade. This decline follows a promising trend in 2024 when unemployment briefly dipped below 11%.
Impact of late Easter on seasonal jobs
A significant factor contributing to the Spanish labour market and job losses in early 2025 was the late timing of Easter. With Easter falling in April, the usual surge in seasonal employment did not occur. This delay had a particular impact on sectors such as hospitality and services, which rely heavily on temporary positions during peak periods.
Sector-specific job losses
Among various industries, the public sector experienced the most substantial decline. A total of 92,200 public sector jobs were lost, representing a 2.6% decrease. In contrast, the private sector was less affected, with only 300 jobs lost. Temporary workers were the most impacted, as the number of temporary contracts dropped by 80,200.
Unemployment in services, industry, and construction
The services sector saw a 12.3% increase in unemployment, with 124,900 individuals losing their jobs. Other sectors, including industry and construction, also faced rises in unemployment, with 21,100 and 13,700 more individuals, respectively, becoming jobless. Agriculture, however, showed some resilience, with 25,000 new jobs created despite a slight increase in unemployment.
Positive developments amidst decline
Despite the negative figures, there were some positive trends in the labour market. The number of self-employed individuals grew by 1,400 in the first quarter, and the total number of self-employed people increased by 79,800 over the past year. Seasonally adjusted employment also saw an uptick, with 159,700 more people in work, pushing the total workforce to over 22 million for the first time.
Gender and age disparities
The labour market data also revealed disparities between men and women. Men lost 94,100 jobs, while women gained 1,600, bringing the number of working women to a record high of 10.15 million. However, the unemployment rate for women rose to 12.72%, while men saw a slight increase to 10.14%.
Youth unemployment also remained a significant concern, with the number of unemployed individuals under 25 rising by 16,000, bringing the youth unemployment rate to 26.5%. On a brighter note, the number of young people both working and studying grew to 1.1 million.
While Spain’s labour market is facing pressures at the start of 2025, there are areas of growth, including self-employment and longer working hours. However, the rise in unemployment and the uneven impact across sectors and demographics suggest that more support may be needed to ensure a recovery.
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