Spain reports mixed labor signals in the third quarter
Spain’s labor market presented a mixed picture in the third quarter. Unemployment increased by 92,700 to reach 2,855,200, while the seasonally adjusted jobless rate rose to 11.84 percent from 11.6 percent in the previous quarter. At the same time, payrolls expanded, with 209,000 more people employed and total employment climbing to 21,265,900. These figures come from the Employment Situation Survey conducted by the National Institute of Statistics and the INE data collection teams this week.
The apparent paradox of higher unemployment alongside rising employment reflects a labor market growing faster than the pool of newly unemployed individuals. Between July and September, the working-age population defined as ages 16 to 64 and willing to work grew by 301,900, lifting the active population to a record 24,121,000. Practically speaking, 209,000 of the additional participants found work, while 92,700 remained without jobs.
Accelerated employment growth
Employment rose by 209,000 in the third quarter, with total hires up by 720,100 over the last twelve months and a year-over-year growth rate speeding up to 3.51 percent. The rise in the jobless total by 92,700 people represents a 3.36 percent uptick, bringing the total unemployed to 2,855,200. Over the past year, unemployment has fallen by 125,000, a 4.20 percent decrease. The quarter closes with historic highs in both employment and the active population, underscoring sustained momentum in Spain’s labor market.
From a policy viewpoint, the improvement is often read as a sign of rising household confidence in job opportunities, even amid a challenging global background. A government statement cited strong employment dynamics and the record-high active population as indicators of resilience for families and businesses alike.
More salaried, fewer self-employed
The quarter shows 209,100 additional workers, driven by a gain of 266,000 salaried employees. Meanwhile, self-employed numbers declined by 60,200 over the period. This shift fits broader patterns seen over the past year, pointing to a move toward more stable forms of work across multiple sectors.
More permanent, fewer temporary in a year
Within the salaried segment, permanent contracts grew by 232,100 in the third quarter, while temporary contracts rose by 33,900. Over the year, total employment increased by 716,500, with permanent positions expanding by more than a million and temporary roles trimming by 385,500. The provisional unemployment rate sits at 17.26 percent, about ten percentage points below pre-pandemic levels, signaling a return toward longer-term stability in Spain’s labor structure.
Services, industry and construction rise; agriculture declines
Quarterly gains concentrated in services, which added 138,700 positions, followed by industry with 98,800 and construction with 19,500. Agriculture continued to trend downward, reducing by 47,800 jobs. On a year-over-year basis, services show a 682,400 gain, construction climbs 49,600, and industry grows by 15,200, while agriculture records a loss of 27,100.
Government estimates
Looking back to the previous quarter, the unemployment rate fell to 11.6 percent of the active population, with around 2.7 million people unemployed, marking the lowest point since 2008 when housing and banking crises hit. The quarter also saw Spain surpass 21 million workers with more stable contracts, less underutilized part-time hours, and reduced overtime. Projections suggested the average unemployment rate would ease to 11.8 percent for the year and continue its decline toward an anticipated 10.9 percent in 2024. The Budget Plan, submitted to the European Commission, outlines these expectations from October 15 onward, according to national authorities and the European statistical framework. In context, the data reflect ongoing efforts to rebalance the labor market while supporting households and businesses in a uncertain global environment. (INE data; national authorities)