Publications

Spain’s labour market remains dynamic, supported by the foreign population, which helps offset demographic ageing. Immigration is key to sustaining employment, though integration faces temporary employment and productivity challenges. The regularisation process is expected to have a limited macroeconomic impact.

The debate over the impact of artificial intelligence on the labor market has resurfaced. Despite continued job creation, AI-exposed sectors such as ICT are undergoing adjustments that may reflect post-pandemic normalization and task reallocation rather than technological unemployment.

Employment rose 0.9% QoQ (SA), four tenths faster than in Q3. Hours worked and participation increased, while unemployment fell to 10.2% (SA). In 2025, 567,200 jobs were created (2.6%) and the jobless rate declined to 10.5%.

Adjusted for seasonality (SA), employment grew by 0.4% q/q in the third quarter, slightly less than in the previous one. Hours worked increased (0.7% q/q), while both temporary employment (15.1% SA) and unemployment rates (10.5% SA) continued to decline.

Once the favorable seasonality is discounted, employment rose 0.7% quarterly (SWDA), one tenth more than Social Security affiliation. Likewise, hours worked increased by 0.3% SWDA and temporary employment rates (down to 15.3% SWDA) and unemployment rates (down to 10.5% SWDA) dropped.

After removing the quarter’s negative seasonal effects, employment rose by 0.7 % QoQ SWDA—0.1 percentage point above Social Security registrations—and hours worked also climbed by 0.2 %. Meanwhile, the temporary employment rate held at 15.6 % SWDA , and the unemployment rate dropped to 10.7 % SWDA .

Seasonally adjusted data shows a significant increase in both employment (0.8% q/q) and hours worked (1.2% q/q). The unemployment rate dropped to 10.8%, and the temporary employment rate decreased to 15.5%. In 2024, 471,700 jobs were created (2.2%), reducing the unemployment rate to 11.3%.