Spain entered November with a mixed labor picture. While the country logged a small drop in overall employment compared to the prior month, the level of activity remained steady at a high historical mark, with about 20.8 million people counted as active workers. Unemployment, however, declined slightly, falling by 24,573 people to 2.7 million reserved as job seekers.
Regionally, Madrid faced a slower start but managed to close the gap with Catalonia thanks to notable hiring gains. In Catalonia, job losses were modest, and the regional dynamics showed resilience across the broader labor market.
November is traditionally a tougher month for employment, often characterized by stagnation in social security membership. Still, the latest data show the sector managing to hold ground, a contrast to the pre-pandemic period. Comparing with 2019, before covid-19, social security entities recorded a higher loss in members. The figures released recently by the Ministry of Labor and Social Security highlight these contrasts as the year progressed.
After a warmer autumn, the arrival of cooler weather led to fewer people on terraces and a slower pace in hospitality. The sector recorded the most pronounced contraction, with 115,539 fewer members than in October. Prices at bars and restaurants cooled gradually, but November still saw a sharp drop in occupancy in this sector.
Retail activity during the Black Friday and Cyber Monday period remained relatively quiet in terms of hiring, while trade did see a marginal improvement, adding 23,257 employees compared with October. Education and administrative activities stood out with stronger gains, adding 38,024 and 10,169 jobs respectively, placing them among the top sectors for employment growth.
Exceptionally high and pending issues
As 2023 draws to a close, Spain is aiming for a robust final balance in the job market. While a year-end peak is within reach, plans may fall short of some aspirations. Active employment continues around 20.8 million, marking a level that sustains more than half a million more workers than the previous year and almost two million more than before the pandemic onset. This trajectory reflects a mix of domestic momentum and global economic tensions that influenced hiring patterns throughout the year.
The international context, including geopolitical conflicts and inflation pressures, created uncertainty, yet many firms continued to hire. A notable share of the employment growth is attributed to the immigrant workforce, with four out of every ten new jobs in 2023 filled by people born outside Spain. The labor market has benefited from this demographic contribution even as economic challenges persisted.
As the norm evolves, the trend toward contract types shows changes in the employment mix. The ratio of new contracts features fewer long-term commitments, with six out of ten contracts being temporary and four out of ten uncertain. The share of permanent full-time positions remains close to forty percent for another month, signaling ongoing adjustments in hiring models while companies balance flexibility with stability.
A persistent challenge for Spain’s labor market remains high unemployment rates. The government has begun discussions about pursuing policies aimed at achieving truly effective employment. About 2.7 million people are registered with Sepe, a figure that underscores the ongoing challenge of reducing unemployment compared with EU peers. This situation has long been a priority for policymakers in Spain as they work to strengthen opportunity and inclusion across the economy.