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This Working Paper briefly describes the latest update made to the sectoral module of the RegData FEDEA-BBVA database, 1955-2023.

In 1985, Spain joined what was then the European Economic Community. Four decades down the line, the balance is very positive in terms of growth, employment, and well-being, although it also reveals certain outstanding issues that Spain would do well to address.

According to the latest Quarterly Labor Market Observatory, published by BBVA Research and FEDEA, Spain's labor market continues to exhibit strong job creation, although persistent imbalances necessitate structural reforms. Employment growth must translate into greater productivity and equity.

Economic growth in Spain has been based on extensive factors (which may be temporary): incorporating more people into the labor market has been decisive. In contrast, productivity (the intensive and unlimited factor of growth) has yet to take off.

National employment grows, mainly driven by non-wage employment (+8% annually in March). Of 1.1M jobs created, most are independent and informal, raising the informality rate to 57.2%. The challenge is to formalize this employment to improve conditions and reduce poverty.

Despite rising uncertainty and early signs of cooling, the U.S. labor market remains broadly balanced, driven by services, stable participation, and moderated wage growth. However, risks from policy shifts and slower job openings are building.

The national unemployment rate for March 2025 was 9.6% and the seasonally adjusted rate was 9.1% marking the third consecutive monthly decrease and placing it more than one percentage point below its 2024 average. This positive performance in the unemployment rate is mainly attributed to the strong dynamics of employment.

The latest Social Security enrollment figures for March come as welcome news for the Spanish economy, yet they are also a timely reminder that job creation alone is not enough in itself: we also need it to be more productive.