Spain | Quarterly Labor Market Observatory 3Q2025

Summary

In this edition of the QLMO, we examine labour market developments using the information available up to Q3 2025. We review the main aggregate indicators and analyse the challenge of generational replacement.

Key points

• Key points:
• Job creation slowed in Q3 2025. It grew by 0.4% quarter-on-quarter (SA) according to the Labour Force Survey (EPA), and by 0.7% based on the Quarterly National Accounts’ advance estimate. Self-employment increased, while permanent hiring lost momentum and temporary hiring continued to decline. The temporary employment rate fell to 15.1% (SA), a record low.
• The recovery in hours worked gained strength, but hours per worker remained below Q4 2019 levels, largely because of an increase in sick leave.
• Labour force replacement needs cannot be met by the young native population, particularly at higher education levels.
• Skilled immigration is currently enabling all regions to offset the job losses caused by retirements among workers with intermediate and higher education.
• Young native workers are not moving into the activities and occupations vacated by retirees, whereas immigrant workers exhibit a much closer match. These differences are especially pronounced in the most aged regions.

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