Spain | Quarterly Labor Market Observatory 1Q2026

Summary

In this edition of the QLMO, we assess recent labour market developments using the information available through Q1 2026. We review the main aggregate indicators and explore a number of issues related to working conditions, immigration, and youth emancipation.

Key points

• Key points:
• Job creation slowed in the first quarter of 2026, although Social Security registrations point to a stronger pace of employment growth in the second quarter.
• The extraordinary regularisation process is expected to boost the formalisation of employment, although its macroeconomic effects are likely to remain limited.
• Employment growth was not enough to offset the decline in hours worked per employee, limiting the recovery in labour productivity in a context of moderating labour cost growth.
• Foreign-born workers are overrepresented in temporary contracts and, increasingly, in discontinuous permanent contracts. They are also more likely to work atypical schedules, including weekends, evenings, and night shifts.
• Youth emancipation rates have declined across all age groups, especially after the pandemic. However, the immigrant population shows comparatively high emancipation rates.

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