Spain’s labour market saw a seasonal decline in employment in August. The number of people registered with the social security system fell by 162,840, while the number of registered unemployed rose by 44,419. However, the year-on-year trend remains positive: Spain has gained almost 680,000 additional workers over the past year.
Spain Expat Press Editorial Team
by Marlon Gallego Bosbach
Spain’s labour market recorded the seasonal decline in employment that is typical for August. According to figures released on Wednesday, the number of people registered with the social security system fell by 162,840. At the same time, the number of registered unemployed rose by 44,419.
At the end of August, a total of 2,355,918 people in Spain were unemployed. Despite the monthly increase, unemployment remains at a comparatively low level. For the month of August, this is the lowest figure recorded since 2007.
More than 22.3 million people in employment
The number of people in employment stood at around 22.34 million in August. Despite the decline compared with July, this was the highest employment level ever recorded for the month of August.
The year-on-year development is even more striking. Over the past twelve months, the number of people in employment increased by 679,023. This represents growth of 3.13 per cent.
The monthly decline in August should therefore primarily be viewed in the context of the seasonal characteristics of Spain’s labour market. August is traditionally a month in which employment falls. As the peak tourist season comes to an end and numerous contracts expire, particularly in the education sector, the number of people in employment regularly declines.
Education sector particularly hard hit
The seasonal effect was particularly pronounced in the education sector, where more than 78,000 jobs were lost in August. Other sectors also recorded declines, including parts of industry, administrative services, as well as scientific and professional activities.
At the same time, other sectors managed to increase employment. These included healthcare, hospitality and construction. The decline in August therefore does not necessarily mean that companies are cutting jobs on a large scale or on a permanent basis. A significant part of the change is seasonal.
Unemployment rises by more than 44,000
The number of registered unemployed people rose by 44,419 in August, an increase of 1.92 per cent compared with July. This brought the total number of people registered as unemployed with Spain’s public employment offices to 2,355,918.
The year-on-year picture, however, is quite different: compared with August 2025, there are 70,593 fewer unemployed people. The number of registered unemployed therefore fell by 2.91 per cent over the past year. The rise in August should therefore primarily be understood as a seasonal effect. At the same time, another factor is playing an important role this year: the exceptional regularisation of foreign workers.r.
Regularisation of foreign workers affects the statistics
Since April, Spain has been carrying out an exceptional procedure to regularise migrants. By the end of June, around 1.17 million applications had already been submitted. By the end of August, 337,917 foreign workers had been newly registered with the social security system as part of the process.
The development is therefore having a noticeable impact on the latest labour market figures. On the one hand, the decline in employment is being offset to some extent by the addition of foreign workers. On the other hand, the process is also leading people to register as jobseekers or unemployed.
The development also highlights the increasingly important role that foreign workers play in Spain’s labour market.
More than 3.5 million foreign workers in employment
In August, the number of foreign workers registered with the social security system surpassed the 3.5 million mark. Foreign workers now account for around 15.9 per cent of all people in employment in Spain.
Particularly noteworthy is the development over the past year: of the 679,023 additional people in employment, around 482,000 were foreign workers. Immigration is therefore contributing significantly to Spain’s current employment growth.
Employment continues to rise after seasonal adjustment
An important distinction emerges when looking at the figures after seasonal adjustment. While the number of people in employment fell significantly in August at first glance, seasonally adjusted employment increased by 83,844.
This argues against interpreting the figures as a sudden downturn in Spain’s labour market. Instead, the data point to a labour market that continues to grow, although its monthly figures are heavily influenced by the seasonal characteristics of the Spanish economy.
1.14 million new employment contracts
A total of 1,144,827 employment contracts were registered in Spain in August. Around 38.5 per cent of these were permanent contracts.
This continues the trend towards more permanent employment. Since Spain’s labour market reform, the proportion of temporary employment has fallen significantly.
All regions record an increase in unemployment
The rise in unemployment in August was not limited to individual regions. With only a few exceptions, the number of unemployed people increased across Spain’s autonomous communities. The sharpest increases were recorded, among others, in Catalonia, Madrid and the Valencia region.
The end of the summer season also plays an important role here. Regions with a high reliance on tourism and services are particularly affected by seasonal fluctuations. The Balearic Islands, for example, illustrate this typical end-of-summer pattern: despite reaching a record level of employment in August, unemployment increased compared with July.
Women and young people particularly affected
The rise in unemployment affected both men and women. However, the increase was more pronounced among women, with the number of unemployed women rising by around 22,700 in August.
Youth unemployment also increased. Young workers in particular are disproportionately represented in seasonal sectors such as hospitality, tourism and retail. The end of the summer season therefore tends to affect this group particularly quickly.
Spain’s labour market remains on a growth trajectory
Despite the weak monthly figures, the longer-term trend presents a considerably more positive picture. Spain now has more than 22.3 million people registered with the social security system. Almost 680,000 jobs have been added over the past year, while the number of unemployed people is around 70,600 lower than a year ago.
August therefore primarily highlights the seasonal nature of Spain’s labour market. The most important figure is not the loss of 162,840 people in employment compared with July, but the year-on-year development: despite the seasonal decline, Spain has gained almost 680,000 additional workers.
In the coming months, it will be crucial to see how quickly the seasonal effects that typically follow the summer fade and whether employment growth continues into the autumn.
