Spain’s labour market continues its remarkable upward trend. The number of registered unemployed people fell to around 2.32 million in May 2026 – the lowest figure recorded for the month of May since 2007. At the same time, the number of workers contributing to the social security system reached a new all-time high of more than 22.3 million. The tourism and hospitality sectors in particular were responsible for a significant surge in employment ahead of the summer season.
Spain Expat Press Editorial Team
by Marlon Gallego Bosbach
Tourism creates thousands of new jobs
As announced on Tuesday by Spain’s Ministry of Labour and Social Economy, the number of unemployed people fell by 36,323 in May compared with the previous month. This brings the total number of registered unemployed to 2,320,721. Although analysts had expected a stronger decline, the figure still marks the lowest level for a May in 19 years and also the lowest monthly reading since March 2008.
The services sector is once again the main driver behind the positive development. In hotels, hospitality and tourism-related services alone, the number of unemployed people fell by almost 30,000. At the same time, more than 67,000 new jobs were created in the hospitality industry, as hotels, restaurants and leisure providers expand their capacity ahead of the upcoming peak season.
Employment at a historic high
Even more striking than the decline in unemployment is the rise in employment. In May, around 232,000 additional social security registrations were recorded – the second-best May result since records began. As a result, total employment rose to approximately 22.33 million people, reaching a new record high.
Over the course of a year, more than 553,000 additional jobs were created in Spain. Alongside the tourism sector, the strongest growth was seen in healthcare, social services, construction, education and the manufacturing industry.
Foreign workers play a key role
A notable trend is the growing importance of foreign workers in the Spanish labour market. Almost half of all new jobs created in May were filled by foreign employees. In total, more than 111,000 new foreign workers joined the workforce, bringing their number to over 3.35 million. They now account for around 15 per cent of all employees registered in Spain’s social security system.
Experts see this as an important factor in the country’s economic dynamism. While many European countries are struggling with labour shortages, Spain is increasingly benefiting from the integration of foreign workers into sectors with high staffing demand.
Youth unemployment reaches record low
The situation for young people developed particularly positively. The number of unemployed people under the age of 25 fell below 165,000 for the first time, reaching a historic low of 164,955. Compared with April, youth unemployment decreased by 4,738 people.
The situation for women also improved significantly. The number of unemployed women fell to its lowest May level since 2008, while the number of employed women reached a record high of around 10.6 million.
Andalusia, Catalonia and Madrid top the statistics
From a regional perspective, all of Spain’s autonomous communities recorded a decline in unemployment. The largest improvements were seen in Andalusia, with 9,125 fewer unemployed people, followed by Catalonia with 6,900 fewer, and the Madrid region with 3,834 fewer jobseekers.
The Balearic Islands, a major tourism region, benefited particularly strongly, where employment rose by around eight per cent within a single month. Preparations for the summer season are already in full swing there.
Despite the positive performance, Spain remains at the bottom of the EU ranking
Despite the positive development, unemployment remains one of the country’s biggest economic challenges. The national unemployment rate still stands at around 10 to 11 per cent, well above the European Union average. Spain therefore remains one of the countries with the highest unemployment rates in Europe.
Economists also note that the decline in unemployment in May was weaker than in previous years. While nearly 58,000 people left unemployment in May 2025, the reduction this year stood at just over 36,000. Nevertheless, the overall picture remains positive, with the labour market continuing to improve steadily over the past several years.
Spain is experiencing its strongest labour market phase since the financial crisis
The latest figures underline the profound transformation of Spain’s labour market. Following the severe impact of the 2008 property and financial crisis, which destroyed millions of jobs and pushed unemployment at times above 25 per cent, the Spanish economy today appears significantly more resilient. Economic growth, labour market reforms, the increased use of permanent contracts and Spain’s continued appeal as a tourism destination are driving an employment boom that has now reached historic proportions.
With the start of the summer season, observers expect employment to continue rising in the coming weeks. If this trend continues, Spain could reach further record levels in the labour market later this year.
