Unemployment is one of the most important issues facing the Spanish economy at the moment, as it saw a slight increase in the number of unemployed people during the month of January 2025. Despite this increase, the total number of unemployed people remains below 2.6 million people, the lowest level for this month in the last seventeen years. The number of unemployed people registered with the offices of the State Public Employment Service (SEPE) at the end of January was 2,599,443 people, an increase of 38,725 people compared to the previous month (an increase of 1.51%). Compared to the same month of the previous year, the number of unemployed people decreased by 168,417 people, a decrease of 6.08%.
When looking at this change in unemployment figures according to the seasonal rate, a decrease of 33,055 people is observed compared to December of the previous year. This indicates a continued decline in unemployment in recent months, reflecting an improvement in the Spanish labour market. However, despite these improvements, unemployment figures remain high in some sectors, such as agriculture and services.
With regard to unemployment by economic sector, different changes were observed between sectors. For example, the number of unemployed in the construction sector fell by 4,527 people, reflecting an improvement in this sector. In the industry sector, the number of unemployed fell by only 241 people. Conversely, other sectors saw increases in the number of unemployed, with the number of unemployed in the services sector rising by 2.42% (44,595 people) and in the agricultural sector by 1.31% (1,099 people).
On the other hand, unemployment was affected unevenly between genders and age groups. Unemployment among women rose by 31,869 women in January compared to the previous month, bringing the total number of unemployed women to 1,563,431.
The percentage of the younger age group
This represents the lowest level of unemployment among women in January in 17 years. On the other hand, unemployment among men increased by 6,856 men to reach a total of 1,036,012.
Compared to January 2024, the data showed a significant decrease in the number of unemployed people among both sexes. The number of unemployed women decreased by 95,446 women, or 5.75%, while the number of unemployed men decreased by 72,971 people, or 6.58%.
For the younger age group, young people under 25 years of age saw an increase in the number of unemployed people by 2,563 people (an increase of 1.38%) compared to December. However, the number of unemployed people in this age group remains at 188,364 people, the lowest figure in the historical series for January.
As for unemployment in the autonomous communities, some regions have seen an increase in unemployment. For example, unemployment has increased in Andalusia, the Community of Madrid and the Community of Valencia, where the number of unemployed has increased by 11,903, 3,541 and 3,078 people respectively. Meanwhile, the Balearic Islands have seen a decrease in unemployment.
In terms of contracts, 1,213,905 contracts were registered in January, a significant number. Of these contracts, 41.87% were permanent contracts, equivalent to 508,215 contracts. These long-term contracts reflect relative stability in the labour market, but the creation of sustainable jobs still needs further improvements.
As for unemployment benefits, the number of beneficiaries of these benefits at the end of December 2024 was 1,788,185 people. This represents a coverage rate of 74.51%, the highest level since 2010.
Some factors that may contribute to this trend
The amounts received by beneficiaries have also increased, with the average monthly investment per beneficiary in December reaching €1,192.3, an increase of €122.2 compared to the same month last year. Total investments in unemployment benefits amounted to €2,083.8 million in the same month.
Despite the improvement in some economic indicators, such as the decrease in unemployment in some sectors, challenges remain in the Spanish labour market, especially for women and young people, as well as in some sectors such as services.
Some factors that may contribute to this trend
- Seasonal changes in the economy: The first months of the year are usually a transitional period in many economic sectors, especially in seasonal sectors such as agriculture and construction. In the agricultural sector, for example, the end of the harvest season at the beginning of the year may reduce the need for seasonal workers, leading to a temporary increase in unemployment. Meanwhile, the construction sector, which depends on weather conditions, is experiencing a decrease in activity due to the cold weather in some areas, leading to a reduction in temporary job opportunities.
- Global economic slowdown: Despite some economic indicators improving in Spain, the global economy may suffer from slowdowns that affect local economic performance. Global economic crises, such as the slowdown in the growth of the European Union economies or trade tensions, may affect the Spanish economy, leading to a reduction in job opportunities.
3: Seasonal changes in the economy: The first months of the year are usually a transitional period in many economic sectors, especially in seasonal sectors such as agriculture and construction. In the agricultural sector, for example, the end of the harvest season at the beginning of the year may reduce the need for seasonal workers, leading to a temporary increase in unemployment.
