Unemployment in Spain falls below 11%

468,000 new jobs drive recovery

by Lorraine Williamson
unemployment figures in Spain

For the first time in 16 years, Spain’s unemployment rate has fallen below 11%. In 2024, the creation of 468,100 new jobs led to a record high in employment, with nearly 22 million people now in work.

This historic milestone, reported by the National Institute of Statistics (INE), marks a significant shift in the country’s labour market.

Record employment levels

Spain’s unemployment rate dropped to 10.6% in 2024, its lowest level since 2008. The figures highlight not only overall job growth but also notable improvements in employment for women, who have benefited substantially from the evolving labour market.

Growth across key sectors

Job creation has been driven by various sectors, with the service industry leading the way. Nine out of ten new jobs came from this sector, which saw employment rise by 2.6%. The construction and industrial sectors also reported growth, reflecting the broad-based nature of the recovery.

Who benefited most?

Employment rose across all demographics, but certain groups experienced the most significant gains:

  • Youth employment: The number of employed individuals aged 16–19 increased by 16%, while those aged 20–24 saw a 7.4% rise.
  • Older workers: Employment among those aged 50–55 increased by 5%, and for those over 55, the rate grew by 4%.
  • Foreign workers: A remarkable 40% of the new jobs were taken by non-Spanish workers, underlining their growing role in Spain’s economy.

Both men and women benefited almost equally from the job market expansion, showcasing an inclusive labour market improvement.

A decline in temporary contracts

Another positive trend is the reduction in temporary contracts, which have long been a feature of Spain’s labour market. The increase in permanent employment suggests greater stability for workers and households. The number of households where every member is unemployed has decreased, while those with all members in work have risen significantly.

Challenges and future prospects

While the progress is encouraging, challenges remain. Spain’s unemployment rate, though improved, is still above the average for OECD countries, where the average stands at 6.1%.

Spain’s employment rate of 66.3% also lags behind the OECD average of 70.3% and the EU average of 70.9%. Despite these gaps, Spain is gaining recognition for its economic recovery. The Economist recently identified Spain as the strongest economy in the OECD, highlighting its resilience in the face of global challenges.

Will unemployment continue to fall?

The pace of job growth has slowed slightly compared to the previous year, but the overall trajectory remains positive. The Ministry of Labour confirmed that 2024 marked the lowest number of unemployed people in 17 years.

As Spain continues to strengthen its labour market, the focus will shift towards closing the gap with other OECD countries and ensuring long-term stability. For now, the data signals a promising outlook for Spain’s economy and its workforce.

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