Catalonia’s labour market showed worrying signs in February as unemployment figures rose, a trend driven almost entirely by young people struggling to find their first job, according to new data from the regional government.
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While most sectors of the economy held steady, an unusual uptick in joblessness concentrated in the services sector, particularly among first-time jobseekers. The latest figures from the Department of Labour (Departament de Treball) reveal that unemployment among people under 25 surged by 7%, adding 1,530 individuals to the jobless register. Furthermore, a smaller increase of 0.2% (509 people) was also recorded for those aged 25 and over. This culminated in an overall increase of 2,039 unemployed workers in a month that typically sees a decline.
This increase positions Catalonia as an outlier within Spain. Of the 3,500 new unemployed people registered across the country in February, nearly six out of every ten were in Catalonia. This trend marks a significant slowdown in the region’s post-pandemic recovery compared to the rest of the country. Year-on-year, the reduction in unemployment in Catalonia now stands at just 2.1%, a stark contrast to the national average decrease of 5.8%.
A Troubling Paradox
The data highlights a curious and persistent paradox in the Catalan economy. The rise in unemployment is not a consequence of widespread job destruction, but rather the market’s inability to absorb new entrants. As detailed in an analysis by VilaWeb, this creates a situation where employers report difficulties in finding staff, while young people simultaneously struggle to secure employment.
This challenge is particularly acute for the region’s youth, a demographic that is increasingly diverse, with recent data showing 42% of young adults in Catalonia were born abroad. While Spain as a whole has made progress, with the national unemployment rate recently falling to a 15-year low, the path for young Catalans appears more difficult.
Official Optimism vs. Underlying Concerns
Despite the concerning figures, the Catalan government has projected an optimistic outlook. Paco Ramos, the Secretary of Labour, described the region’s labour market as “robust” and showing “sustained growth that is to be commended.” His assessment, however, focused on a different metric: Social Security affiliations, which grew by 23,564 in February.
Yet critics point out that this single-month gain must be viewed in context. Indeed, it recovers less than half of the 56,000 affiliations lost between October and January. Furthermore, Catalonia’s year-on-year affiliation growth (+2%) lags behind the national average (+2.3%) and is significantly outpaced by other major regions like Valencia (+3.5%) and Madrid (+2.9%).
The Department of Labour did highlight one positive milestone: at 327,253, Catalonia registered its lowest total number of unemployed people for a month of February since 2008.
Business Groups Raise the Alarm
Catalonia’s main business associations have expressed significant concern over the data, warning that the official optimism masks deep-seated structural issues.
Foment del Treball, a major employers’ federation, warned of a “worrying deceleration.” They also pointed to structural problems that hinder competitiveness, such as increasing absenteeism, low productivity per employee, a mismatch between professional supply and demand, and growing difficulty in filling certain vacancies.
The small and medium-sized business association, PIMEC, echoed these worries. “In a month that traditionally tends to see a reduction in unemployment, the data shows negative behaviour, both in monthly and annual terms, which generates concern,” stated Josep Ginesta, the organisation’s secretary general. He suggested the increase could be linked to a delay between the mandatory registration of students for dual vocational training (FP dual) and the finalisation of their work contracts. “We believe that the public policies being promoted are not sending the right messages to guide people towards the labour market,” Ginesta added.
Sílvia Miró, director of PIMEC’s Labour Area, provided further detail on the market’s lack of agility, highlighting the persistence of long-term unemployment. “293,323 people unemployed in January were still so in February,” she said, “which represents a permanence rate in the register of 90.2%.” Miró noted that the average duration of unemployment in Catalonia is currently 9.6 months.
As the government focuses on top-line figures, business groups and analysts warn that a failure to address these underlying weaknesses could see Catalonia’s labour market, and particularly its younger generation, fall further behind the rest of Spain.
