Spain's unemployment rate dropped to its lowest level since 2008 during the second quarter of 2026, as strong seasonal hiring and continued labor market growth pushed employment to a new record, according to official figures released on Tuesday.
Data published by the Spanish National Statistics Institute (INE) showed the country's unemployment rate fell to 9.87% between April and June, marking the first time it has fallen below the 10% threshold in nearly two decades.
Employment increased by 486,000 during the quarter, lifting the total number of people in work to a record 22.779 million. At the same time, the number of unemployed people declined by 213,300, reflecting continued improvement in Spain's labor market.
The increase in employment coincided with the start of the summer tourism season, traditionally one of the busiest periods for hiring across the country. The services sector accounted for the largest share of new jobs, supported by increased tourism activity, while construction and manufacturing also reported employment gains. Agriculture was the only major sector to record a decline in jobs during the quarter.
Spain's labor force also expanded, with the number of economically active people rising by 272,700 to a record 25.27 million. The increase reflects both stronger employment opportunities and a growing number of people entering the job market.
Employment growth continued to favor stable jobs. Nearly three-quarters of salaried workers now hold permanent contracts, while temporary employment continued to decline, particularly in the private sector. Full-time positions represented 405,400 of the total jobs created during the quarter.
Private-sector employment rose by 501,600 positions, while public-sector employment declined by 15,600. In seasonally adjusted terms, employment increased 0.54% compared with the previous quarter, indicating continued momentum in Spain's labor market.
Regionally, Catalonia recorded the largest increase in employment in absolute terms, while the Balearic Islands posted the strongest percentage growth, benefiting from higher tourism demand during the summer months.
The latest employment figures leave Spain approximately 221,000 jobs short of the government's target of reaching 23 million people in employment by the end of 2026. Economy Minister Carlos Cuerpo first outlined the objective in 2025, forecasting annual employment growth of around 500,000 jobs.
The latest data highlights the continued resilience of Spain's economy despite broader economic uncertainty across Europe. Strong demand in tourism, steady private-sector hiring, and an increasing share of permanent employment have helped strengthen the country's labor market, with policymakers now focused on maintaining employment growth through the remainder of the year.
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