Spain | Quarterly Labor Market Observatory 1Q2025

Summary

This edition of the OTMT examines labor market trends based on data available through Q1 2025. It reviews the main aggregate indicators and analyzes recent labor market flows, with a focus on closing gender gaps.

Key points

• Key points:
• Job creation ranged between 0.6% quarter-on-quarter (seasonally and calendar-adjusted) according to Social Security enrollment, and 0.8% based on the preliminary estimate from the Quarterly National Accounts. April data and figures from the first half of May suggest that labor market momentum is set to continue into Q2 2025.
• Foreign nationals accounted for the majority of both job creation and the increase in labor force participation.
• In 2024, an average of 3.4 million people aged 20 to 59 transitioned between labor market statuses each quarter. Transitions from unemployment to employment have increased, while exits from unemployment to inactivity have stalled. Flows from inactivity to employment are back on an upward path, and movements from employment to other statuses continue to decline.
• The gender gap in participation, employment, unemployment, and temporary work rates has narrowed over the past two decades, yet it remains.
• While the gender pay gap has decreased, women continue to earn less than men—even after controlling for differences in age, education, contract type, working hours, sector, and company size. The adjusted wage gap is lowest among younger workers (4%) and exceeds 15% for those aged 60 and over.

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