Spain is celebrating a historic milestone in its labour market: in the second quarter of 2026, the number of employed people reached a new record high. At the same time, unemployment fell significantly. According to the latest data from Spain’s Labour Force Survey (EPA), the number of unemployed people decreased by 213,300, while employment saw strong growth.
Spain Expat Press Editorial Team
by Marlon Gallego Bosbach
Record number of employed people in Spain
The number of employed people increased by 486,000 between April and June 2026 compared with the previous quarter. Spain therefore reached a total of 22.779 million employed workers – the highest figure since records began. The year-on-year comparison also shows significant growth, with around 510,200 new jobs created over a twelve-month period.
The strong increase reflects the continued resilience of Spain’s labour market. The services sector played a particularly important role, supported by the traditionally strong summer season, tourism and rising demand across various areas of the economy.
Unemployment rate falls below ten per cent
Alongside the rise in employment, the number of unemployed people fell significantly. A total of 2.495 million people were without work in the second quarter of 2026, representing a decline of 213,300 people over the previous quarter. The unemployment rate dropped to 9.87 per cent, falling below the ten per cent mark for the first time since 2008.
The long-term trend is also showing a decline: compared with the previous year, the number of unemployed people fell by 57,800. At the same time, the number of people in the labour force increased to 25.274 million, indicating that more people are actively participating in the job market.
Growth driven mainly by private-sector employment
The new jobs were created mainly in the private sector. According to recent analyses, a large share of the employment growth came from salaried positions, with permanent contracts continuing to gain importance.
The development is also linked to the Spanish labour market reforms of recent years, which aimed to increase the number of permanent employment positions and reduce the reliance on temporary contracts.
Tourism remains a key driver of employment
As in many previous summer periods, Spain particularly benefited from the strong performance of the services sector. Regions with high tourism activity recorded significant employment growth. The travel and hospitality industries therefore remain among the most important factors driving seasonal changes in the Spanish labour market.
However, new jobs were also created in other sectors beyond tourism. These include healthcare, education, as well as professional and technical services.
Positive development, but challenges remain
Despite the historic figures, experts warn against underestimating the structural challenges facing Spain’s labour market. These include ongoing regional disparities, unemployment among certain population groups and the situation of many self-employed workers.
Although the unemployment rate has fallen below ten per cent for the first time in many years, Spain remains one of the European countries with a comparatively high unemployment rate. However, the latest figures are considered a significant improvement compared with previous years.
Government describes development as a historic milestone
The Spanish government views the latest labour market data as evidence of the resilience of the economy. The employment record and the decline in unemployment are seen as signs that the labour market continues to develop steadily despite international uncertainties.
In the coming months, the key question will be whether Spain can maintain its high level of employment and whether the newly created jobs will prove sustainable. However, the latest figures mark one of the strongest periods for Spain’s labour market since economic statistics began.
