Employment

The Spanish economy is growing above the Eurozone average, driven by domestic demand and employment. However, it faces crucial challenges such as stagnant productivity and weak investment, which limit the increase in added value and long-term well-being.

Social Security affiliation fell by 162,800 people and unemployment grew by 44,400. Adjusted for seasonality, an estimated rebound of 74,000 contributors and 10,500 unemployed is estimated. The extraordinary regularization of immigrants may have added 211,000 foreign affiliates and 64,900 unemployed up to August.

The national unemployment rate stood at 8.1% in July, down from 8.8% a year earlier and its lowest level for the month since 2001. The decline was driven by higher employment, which more than offset the increase in labor force participation.

In the second quarter of 2026, labor poverty in Mexico rebounded to 31.9%, 1.2 points above the historic low of the previous quarter. This increase is associated with a rise in labor informality, with the occupation rate reaching 30.2%, its highest level in more than 20 years.

Formal employment in Mexico posted a monthly contraction of 0.05% in July. Annual growth slowed to 1.5%, and to 1.0% excluding digital platform workers. This dynamic is attributed to weak investment and low business confidence, despite an acceleration in real wages.

Social Security affiliation increased by 41,700 people and unemployment by 19,500. Seasonally adjusted, an increase of 72,000 contributors and a rise of 14,500 unemployed are estimated. The extraordinary regularization of immigrants may have added 149,200 foreign affiliates and 44,500 unemployed up to July.

In 2Q26, GDP grew by 0.7% QoQ, one tenth higher than expected, which introduces an upward bias to the 2026 forecast. Private consumption remained solid, while investment and exports advanced less than expected. Employment supported growth and productivity showed mixed signs.