Labor market developments in March 2025: Declining unemployment and stable employment. The Spanish labor market saw a significant improvement in March 2025, with the number of unemployed people falling by 13,311 compared to the previous month, bringing the total number of unemployed to 2,580,138. This unemployment rate is the lowest since 2008, 17 years ago, and reflects a significant improvement in the labor market situation compared to the financial crises that the country experienced.
A significant decline in unemployment
According to official data, unemployment fell by 146,865 people in the past 12 months. Of these, women recorded a significant decrease of 79,000. This improvement is an important step towards narrowing the gender gap in the labor market. In addition, the number of unemployed youth decreased, reaching 197,524 in March 2025, the lowest figure in the March data series.
Sectoral Analysis of Unemployment
Various economic sectors were affected by the reduction in the number of unemployed. In the services sector, the number of unemployed decreased by approximately 14,461 people, representing a decrease of 0.77%. In the industrial sector, the number decreased by approximately 1,498 people, or 0.75%. The decrease in the construction sector was smaller, reaching 909 people, a decrease of 0.48%. The agricultural sector also recorded a slight decrease in unemployment, reaching 93 people, or 0.11%.
It is also noteworthy that there was an increase in unemployment among those who had never worked, as their number increased by approximately 3,650 people, or 1.53%. Improvement in Unemployment by Gender
With regard to unemployment by gender, women saw a significant improvement, with the number of unemployed women decreasing by 9,176, bringing the total number of unemployed women to 1,553,778. In contrast, the number of unemployed men decreased by 4,135, bringing the total number of unemployed men to 1,026,360.
Youth Unemployment, Contract Unemployment, and the Employment Balance
Comparing the data with the previous year, we find that the unemployment rate among women decreased by 4.83%, while it decreased among men by 6.22%. Regarding youth unemployment, the data showed an increase in the number of unemployed youth under the age of 25, increasing by 2,638 people, or 1.35%. Despite this increase, the number of unemployed youth in March 2025 was the lowest for the month of March since the beginning of data collection, indicating a continued improvement in the integration of youth into the labor market.
Employment in the Autonomous Communities
Across Spain’s autonomous communities, most regions are expected to experience a decrease in unemployment in March 2025. The largest declines occurred in three regions: Valencia (-4,905 people), Catalonia (-2,556 people), and Galicia (-1,822 people).
Contracts and Employment Balance
Regarding contracts concluded in March, the total number of registered contracts reached 1,166,601, of which 43.6% were permanent contracts. This represents relative stability in the labor market, as permanent contracts contribute to strengthening economic and social stability. This data indicates that most of the new jobs created in the market are sustainable and long-term, which contributes to long-term labor market stability.
Social Benefits and Government Spending
Regarding social benefits, the total number of beneficiaries of support programs in February 2025 reached approximately 1,722,042. The monthly grant received by beneficiaries increased by €29.90 compared to the same month last year, bringing the average grant to €1,014.50. This reflects slight improvements in the social benefits provided by the government to unemployed citizens.
Labor Market Outlook
However, it should be noted that some autonomous communities, such as Madrid and La Rioja, have experienced rising unemployment rates, reflecting regional disparities in the labor market.
Regarding government spending on benefits programs, total expenditures in February 2025 amounted to approximately €2,185.20 million, reflecting the government’s commitment to providing ongoing financial support to individuals affected by unemployment.
Despite the challenges faced by some sectors and regions, it can be said that the Spanish labor market showed significant improvements in March 2025. With the continued expansion of permanent contracts and a decline in unemployment among various segments of society, Spain appears to be on the right track toward greater economic stability. The reduction in unemployment among women and youth, along with the significant decline in unemployment in some sectors, is a positive indicator of the national economy’s improvement.
Despite these improvements, it is still necessary to intensify efforts to address unemployment in some sectors and autonomous communities that continue to suffer from high unemployment rates. At the same time, it is essential that the government continue to provide social support and targeted measures for citizens facing challenges in the labor market. The decline in unemployment in March 2025 in Spain marks a milestone in the economic recovery following the global financial crisis. With positive unemployment figures recorded across many sectors and communities, the Spanish market appears to be making significant improvements. However, sustaining this improvement requires continued government support, as well as adapting employment strategies to current economic and social changes.
Maintaining this positive trend in the labor market requires intensified efforts to improve vocational education and continuing education for individuals, especially those groups that face difficulties in integrating into the labor market, such as women and young people.
