Full Breakdown
Spain’s Unemployment Rate Drops Below 10% in Q2 2026
7/29/2026, 3:04:40 PM
Context and Recent Trends
On July 28, data released by the Spanish National Statistics Institute (INE) showed the unemployment rate fell to 9.87 % in the second quarter of 2026, the lowest level recorded since 2008. The rate had been 10.83 % in the preceding three-month period. At the same time, the labour force expanded by 272,700 people from the previous quarter, reaching a record 25.27 million—an increase of 452,500 compared with a year earlier. The rise in employment coincided with the start of the summer hiring season, traditionally strong for the services sector.
Employment Numbers and Sectoral Shifts
According to INE, the number of people in work rose to 22.779 million, reflecting 486,000 jobs created between April and June. Full-time positions accounted for 405,400 of those jobs, and private-sector employment grew by 501,600, while public-sector jobs fell by 15,600. The Ministry of Economy noted that most of the new jobs were permanent and private-sector positions, with temporary contracts representing only 15 % of salaried workers.
Sector-by-sector, services added roughly 394,000 jobs, construction 60,000, and industry 38,200; agriculture was the sole sector to lose workers, shedding about 6,200 jobs. Unemployment fell by 213,300 to 2.495 million, with declines across all sectors: services (-170,300), agriculture (-22,400), industry (-10,900) and construction (-5,400). Gender-specific data show the female unemployment rate dropped to 11.02 % (down 145,400 jobs) and the male rate to 8.84 % (down 67,900 jobs).
Government Response and Outlook
Economy Minister Carlos Cuerpo had set a target of 23 million people in work by the end of 2026, a goal announced in February 2025 based on projected annual employment growth of around 500,000 jobs. The latest figures leave Spain about 221,000 jobs short of that forecast. The Ministry of Economy emphasized that the surge in permanent, private-sector jobs signals a structural improvement in the labour market.
Why the Decline Matters
A sub-10 % unemployment rate reduces pressure on Spain’s social-security system and improves consumer confidence, especially in tourism-heavy regions such as Catalonia and the Balearic Islands, which recorded the largest absolute and percentage employment gains respectively. The shift toward permanent contracts also suggests a move away from the country’s historically high reliance on temporary work, potentially enhancing job security and long-term wage growth.
