The Spain unemployment rate has fallen below the psychological barrier of 10% for the first time in nearly two decades. According to the latest Active Population Survey (EPA) released by the National Statistics Institute (INE) this Tuesday, the rate stood at 9.93% in the fourth quarter of 2025. This figure has not been seen since the first quarter of 2008.
Therefore, the data reveals a robust labour market at the national level. Consequently, employment has reached historic highs. The number of employed people in Spain rose to 22,463,300. This represents an increase of more than 600,000 compared to the previous year. Meanwhile, this surge in job creation has been the primary driver in pushing the Spain unemployment rate down by more than half a percentage point.
Your browser does not support the video tag.Home » Spain Unemployment Rate Falls Below 10% for First Time Since 2008
Historic Highs in Employment and the Spain Unemployment Rate
The reduction in unemployment was fuelled by sustained growth in the number of people in work. Even when adjusting for seasonal effects, employment grew by 0.34% compared to the previous quarter. Over the last year, the Spanish economy has added 606,200 jobs. This represents a rise of 2.77%.
Consequently, the total number of unemployed people across the state fell by 136,100. It settled at approximately 2.48 million. This dynamic performance has drawn praise from government officials. They view the figures as evidence of structural improvements in the Spanish economy.
Catalonia’s Mixed Picture on Unemployment
While the national trend was overwhelmingly positive, the picture in Catalonia was more nuanced. The unemployment rate in the region rose slightly to 8.24%, up from 8.18% in the previous quarter. However, this statistical increase occurred despite a reduction in the absolute number of unemployed workers. That figure fell by roughly 900 people to a total of 351,200.
The slight rise in the rate is attributed to the growth of the active population outstripping the decline in unemployment. Paco Ramos, Secretary of Labour for the Generalitat, described the results as “positive.” He noted that the shift was due to “an increase in the active population” rather than job destruction. He emphasised that the labour market remains on a path of growth. Nevertheless, questions remain about its capacity to absorb the expanding workforce.
Sector Analysis: Agriculture Leads, Services Stagnate
In Catalonia, the agricultural sector surprisingly led job creation in the final months of 2025. It recorded a 9.9% annual increase—a growth rate unseen in a decade. Construction and industry also posted strong figures, growing by 7.8% and 3.2% respectively.
However, the services sector—which accounts for more than two-thirds of Catalonia’s economic activity—showed signs of exhaustion. Employment in services grew by a mere 0.4%, the lowest rate since the pandemic-stricken year of 2020. This slowdown comes despite the fact that Catalonia’s tourism revenue grew significantly in 2025. This reveals a complex dynamic within the region’s largest economic driver. In absolute terms, the construction sector hired more new workers (19,000) than the much larger services sector (12,700).
Government Optimism vs Union Caution on the Spain Unemployment Rate
Spanish Prime Minister Pedro Sánchez celebrated the figures on social media. He cited “more stability, less youth unemployment and more quality employment.” Similarly, Minister of Economy Carlos Cuerpo highlighted the “push of the private sector.” He described the labour market as stronger and more stable than in previous years. However, this optimistic view is tempered by ongoing labor disputes. These include upcoming industrial action by medical professionals.
Conversely, trade unions offered a starker perspective. A statement from the UGT of Catalonia warned that the data proves the “entrenchment of many structural problems.” It specifically pointed to precariousness, high youth unemployment, and the prevalence of temporary contracts. These concerns highlight the stark socioeconomic divides within the metropolitan area that persist despite improvements in the job market. The CCOO union has called on administrations to do “everything possible” to strive for full employment.
The European Context for Spain’s Unemployment Rate
Despite the historic milestone, Spain’s unemployment rate remains significantly higher than the European Union average. That figure sits at 6%. Until the third quarter of 2025, Spain held the highest unemployment rate among member states. It was the only country alongside Finland to exceed the 10% barrier.
The disparity is particularly sharp when compared to major economies like Germany. It maintained an unemployment rate of 3.9% last summer despite undergoing a recession. While breaking the 10% floor is a major psychological and economic victory for Spain, a considerable gap remains with its northern neighbours. For further context on European labour trends, you can review reports from the Eurostat statistics office.
Join Barcelona English Speakers WhatsApp Community .
