Spain | Quarterly Labor Market Observatory 4Q2025

Summary

This issue of the OTMT reviews labour market developments using data available through the fourth quarter of 2025. We assess trends in the main aggregate indicators and estimate the scale and characteristics of irregular employment in Spain.

Key points

• Key points:
• In Q4 2025, employment growth picked up in Spain overall, while easing in the Valencian Community, albeit from relatively stronger rates. Social Security enrolment data suggest weaker job growth in the first quarter of 2026, both nationwide and in the Valencian Community.
• For the second consecutive quarter, GDP per worker was flat and remained below its pre-pandemic level. Gains along the intensive margin were not enough to offset the decline in output per hour worked.
• The number of non-EU workers in an irregular situation, measured as the gap between employed individuals of non-EU nationality and those not registered with Social Security, has doubled since 2021, stabilising since 2024.
• Irregular employment is concentrated among workers from Central and South America. It is more prevalent among women and in sectors that rely heavily on non-EU labour, such as domestic services, hospitality, manufacturing and construction.
• Catalonia and the Community of Madrid have increased their share of irregular employment, together accounting for half of the total in 2024.

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