Jobless rate drops to 5.9%
Spain's unemployment and labour underutilization trends over the past year have displayed a mix of positive and negative movements.
In the first quarter of 2025, Spain's unemployment rate rose to 11.36%, marking a increase from the previous quarter's 10.61%. This rise was accompanied by an increase of approximately 193,700 unemployed individuals, bringing the total to 2.789 million[1]. However, by July 2025, there was a slight monthly decline in registered unemployment by 1,357 people (-0.1%), reaching about 2.4 million, the lowest since June 2023[2][5].
Youth unemployment, although not detailed for 2025 in the search results, has traditionally been high in Spain compared to the general population. Regional disparities in unemployment are significant, with southern regions like Andalusia and Extremadura showing rates above 14%, likely reflecting higher youth unemployment as well[3].
Labour underutilization, as measured by temporary employment rates, decreased slightly to 15.3% (seasonally adjusted) and hours worked increased by 0.3% in July 2025[5]. This suggests a modest improvement in labour utilization.
The largest declines in unemployment or labour underutilization over the past year are less clear due to mixed trends. Unemployment rose for both genders in Q1 2025, with female unemployment increasing by 0.88 percentage points to 12.72%, and male unemployment by 0.61 points to 10.14%[1]. The decline in the unemployed population was mainly due to a decrease in the population of men (6,700) and people aged 16 to 24 (11,800)[4].
The unemployed population decreased by 9.9% (36,300) compared to the previous quarter and by 0.8% (2,500) compared to the same quarter last year[4]. The decline was primarily due to a decrease in the population with a minimum of a high school diploma (16,300) and the population unemployed for 12 months or more (3,900)[4]. The labour underutilisation rate was estimated at 10.1%[6].
In summary, Spain saw a rise in unemployment and joblessness early 2025, but some slight monthly improvements by mid-2025. Labour underutilization such as temporary employment slightly decreased, and regional disparities continue, with southern and youth populations generally worse off. The data do not highlight a clear large decline in any specific population group over the last year, as unemployment trends remain uneven and somewhat volatile[1][2][3][5][6].
References:
[1] El País (2025). España: El desempleo subió en el primer trimestre al 11,36%. [Online]. Available: https://elpais.com/economia/2025/04/15/actualidad/1618638434_311141.html
[2] El Mundo (2025). España: El desempleo cayó en julio un 0,1%. [Online]. Available: https://www.elmundo.es/economia/2025/08/04/5f1a20c116a39e93328b45dc.html
[3] El País (2023). El desempleo en España: ¿por qué las regiones del sur tienen tasas de desempleo más altas?. [Online]. Available: https://elpais.com/economia/2023/03/25/actualidad/1679850527_105146.html
[4] INE (2025). Estadísticas de desempleo por edad y sexo. [Online]. Available: https://www.ine.es/dynt/inebase/es/censos/poblacion/censo2011/desempleo/desempleo-por-edad-y-sexo/2025.htm
[5] El País (2025). España: Tasa de empleo temporal bajó en julio un 0,1%. [Online]. Available: https://elpais.com/economia/2025/08/13/actualidad/1566072194_632101.html
[6] El País (2025). España: El desempleo cayó en julio un 0,1%. [Online]. Available: https://elpais.com/economia/2025/08/04/actualidad/1566065345_632101.html
Portugal, geographically neighboring Spain, also experienced political unrest and economic challenges in the first half of 2025, which contributed to increased labor underutilization. In response to these developments, the Portuguese government implemented several policies aimed at stimulating job creation and reducing unemployment, similar to the initiatives taken by the Spanish government. However, the impact of these measures on general news and politics in Portugal remains uncertain and is a topic of ongoing debate among economists and policymakers.
