Spain's labour market reached a record 22.8 million employed individuals in the second quarter of 2026, according to the Labour Force Survey published by the National Statistics Institute (INE) on Tuesday. The report indicated that 486,000 jobs were created between April and June, resulting in a drop in the unemployment rate to 9.87%, the lowest level since 2008.
Key Details
The increase in employment aligns with the summer season, which traditionally sees a boost in hiring, particularly in the services sector. The report highlighted that the services sector was the primary driver of job creation, largely due to heightened tourism activity. Other sectors, such as construction and industry, also saw employment gains, while agriculture was the only sector to experience job losses during this period.
The labour force grew to over 25.2 million, reflecting an increase in both employment and the number of individuals entering the job market. The survey noted that almost three-quarters of employees now hold permanent contracts, indicating a shift away from temporary work, especially in the private sector. Full-time positions accounted for the majority of new hires, contributing to a trend of sustained growth in the labour market.
Background
The government aims to achieve 23 million employed individuals if the current pace of job creation continues. Regions such as the Balearic Islands, Murcia, and Catalonia were identified as the top job-generating areas in the country.
Related coverage: US Jobless Claims Drop to Lowest Level Since 1969.
The positive employment data may bolster consumer confidence and spending, impacting sectors such as retail and services. Additionally, the decline in unemployment could lead to wage pressures, influencing inflation dynamics.
Investors will watch for upcoming government policies aimed at sustaining job growth and further economic recovery.