The Spanish labor market saw a decline in the number of employed people during the first three months of 2025, decreasing by 92,500 compared to the previous quarter, bringing the total to 21,765,400. The quarterly change registered a decrease of 0.73% after seasonally adjusted adjustments. Meanwhile, the data showed that employment increased by 515,400 people over the past twelve months.
Despite the increase in the number of employed people, the unemployment rate in Spain rose by 193,700 people, bringing the total to 2,789,200 people, resulting in an increase of 0.75 percentage points compared to the previous quarter. The unemployment rate for this quarter was 11.36%. The unemployment rate decreased by 0.73% year-on-year after seasonally adjusted adjustments, registering a decrease of 188,700 people. Demographic and Sectoral Changes in the Spanish Labor Market
The data also show shifts in demographic changes, with the number of employed men decreasing by 94,100, while the number of employed women increasing by 1,600. Regarding foreigners, Spain saw an increase in the number of employed people of 144,500, including 52,000 foreigners.
With regard to economic sectors, agriculture saw an increase in the number of employed people of 25,000, while the number of employed people in the services sector decreased by 112,300. The number of employed people in the industrial sector also decreased by 4,400, while the construction sector remained unchanged, with a slight decrease of 700.
Part-time and Temporary Work
With regard to contract types, the number of full-time workers decreased by 109,400, while the number of part-time workers increased by 16,900. On the other hand, the number of workers on indefinite contracts decreased by 9,800, while temporary contracts decreased by 80,200.
Public and Private Sector Employment
Private sector employment remained relatively stable, with the number of employees remaining roughly the same, with a slight decrease of less than 300, reaching 18,266,300. The public service sector, on the other hand, saw a slight increase in employment, with the number of workers in this sector increasing by 92,200, bringing the total to 3,499,100.
Transformations throughout the year
Over the past year, the number of workers in Spain increased by 515,400, representing a 2.43% increase. Almost all sectors saw an increase in employment, especially the services sector, which attracted 368,400 people. The number of full-time workers also increased by 381,000, while the number of part-time workers increased by 134,400. Spanish Labor Market Trends in the Coming Months
Despite the challenges facing the Spanish labor market, expectations continue to indicate that the Spanish economy may see a gradual improvement in employment numbers, thanks to ongoing demographic and sectoral shifts. The situation will be closely monitored, especially as global and domestic economic influences continue to impact employment growth in the coming period.
Regional Changes in the Spanish Labor Market
At the autonomous community level, the Madrid region recorded the largest increase in employment during the last quarter, with an increase of 14,800 people. However, there were declines in some regions, such as the Balearic Islands, which saw a decrease in employment of 42,400 people. Despite these disparities, Catalonia continues to record strong increases in employment, with an increase of 47,200 people.
Outlook on the Spanish Labor Market
Growth is expected to continue in some sectors, such as services, and forecasts indicate that this trend will continue as the economic situation in Spain improves. At the same time, the biggest challenge will remain how to address the disparities between different sectors and between Spanish and foreign nationals.
Recent Developments in the Spanish Labor Market
Unemployment Rise as Spanish Labor Market Activity Increases
In the first three months of 2025, the Spanish labor market saw significant increases in the number of employed people of all genders. The number of employed men increased by 77,200, while the number of employed women increased by 116,500. Consequently, women experienced a 12.72% increase in unemployment, while the unemployment rate among men rose to 10.14%.
On the other hand, an increase in employment was observed among Spaniards, with the number of employed Spanish citizens reaching 147,900, while the number of employed foreigners increased by 45,800. This comprehensive growth across all sectors included an increase of 124,900 people in the services sector, 21,100 people in industry, 13,700 people in construction, and 4,500 people in agriculture.
Economic Activity and Demographic Changes
In terms of economic activity, Spain recorded an increase in the active population during this period, rising by 101,200 people to 24,554,500. Women recorded a significant increase in economic activity, increasing by 118,100 people, while the number of men decreased by 16,900 people.
Statistics show that the labor market activity rate reached 58.57%, with foreigners’ activity rising to 69.07%, while the rate among Spaniards reached 56.87%. This disparity indicates that foreigners have a greater ability to adapt to the labor market than Spaniards. Sectoral: Employment and Long-Term Economic Growth
Over the past year, the number of labor market participants decreased by 188,700 people, with various sectors experiencing significant declines. The services sector lost 103,600 jobs, while the number of workers in the
The construction and manufacturing sectors saw employment increase by 11,800 and 7,200 people, respectively. Meanwhile, agriculture saw a slight increase of 1,800 people.
