Publications

In 2025, formal employment grew by 1.3%; however, excluding digital platform workers, growth slowed to just 0.3%. Weak investment, deteriorating business confidence, and job losses in key sectors are constraining total wage growth and, in turn, household income.

The national unemployment rate stood at 7.0% in November 2025, the lowest level for a November since 2001. In seasonally adjusted terms, the rate was 8.3%, marking a change from the stability around 9.0% observed in previous months. Employment growth remained at 4.2%.

Regional convergence in per capita income in Spain had advanced for decades but stalled since the Global Financial Crisis. The halt in productivity convergence and its growing correlation with employment and participation explain the persistence of territorial inequalities.

In December, Social Security affiliation increased by 19,200 people and unemployment fell by 16,300. After seasonal adjustment (SA), the number of contributors is estimated to have risen by 31,000, and the number of unemployed declined by 7,000. Overall, 2025 ended with 487,300 more affiliates and 155,000 fewer unemployed

Spain is entering 2026 with one of the strongest growth trajectories in Europe. After expanding by 3.5% in 2024 and 2.9% in 2025, BBVA Research, in its latest forecasts released last December, projects growth of 2.4%.

The scenario for the Spanish economy points to the continuation of the pattern observed in recent quarters: The expansion will be sustained as long as the capacity to create employment increases and the productivity of capital continues to grow.

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.