Spain’s Employment Momentum Shows Signs of a Soft Patch in May
Spain’s Social Security ministry hints at a cooling in May’s jobs surge after three consecutive fortnights of smaller gains than the weeks just before. Yet the broader picture remains upbeat, with the labor system recording a historic level of participation as 20.7 million people were active, signaling a sustained level of engagement across the economy. In the mid‑month update, the department led by José Luis Escrivá projected the creation of 116,779 jobs for May, underscoring continued momentum in the job market.
The nation’s labor market is riding the strongest stretch of the year, driven by seasonal sectors such as hospitality and tourism that propel activity. Despite the ongoing conflict in Ukraine and persistent inflation, Spain has posted several solid months of job growth, standing well above the pre‑pandemic pace. This resilience reflects a broad and active workforce contributing to a robust economy during the spring period.
Nevertheless, some fatigue is dawning. When the data are adjusted to remove seasonal quirks and the reporting window effects, May appears to show roughly 117,000 new jobs for the month based on the first half. This figure compares favorably with the 2022 monthly average of about 40,780, which included months of both strength and weakness, highlighting a meaningful improvement in underlying hiring trends.
The so‑called “B side” of the employment figures reveals a slower clip, with May’s gains lagging behind the pace seen in the preceding two weeks. Technically this represents a deceleration rather than a contraction, as hiring activities ease slightly compared with the recent sprint. The shift emphasizes the natural ebb and flow of a jobs cycle rather than a sudden downturn.
Officials note that current hiring momentum remains solid, with the rate running about a quarter higher than the year‑to‑date average. They also point out that the number of jobs created so far this year is nearly equal to the total for all of 2022 up to this point. Looking ahead, analysts will watch how the labor market behaves after August to determine whether the recent cooling continues, stabilizes, or worsens. The trend remains one of resiliency, supported by sustained demand across key sectors and a workforce that continues to adapt to shifting economic conditions.