August Slump Hits Spanish Labour Market Hard

Spain’s labour marketplace took a dense deed successful August, shedding 199,300 jobs successful what has been described arsenic nan worst August for employment since 2019. Yet contempt nan steep autumn successful societal information registrations, unemployment figures stay unusually debased for this clip of year, hovering astatine their lowest August level since 2007.

Spain’s Ministerio de Trabajo (Ministry of work) confirmed that nan number of group registered arsenic unemployed roseate by 21,905 during nan month, an summation of conscionable nether 1 per cent, bringing nan full to a small complete 2.42 million. While this uptick marks nan 3rd consecutive monthly rise, nan wide level of unemployment remains acold beneath wherever it stood a decade ago. Compared pinch August 2024, nan full is down by much than 145,000 people, balanced to a 5.7 per cent autumn twelvemonth connected year. The largest contraction was felt successful nan acquisition sector, which mislaid almost 76,000 jobs arsenic contracts tied to nan schoolhouse twelvemonth expired. Administrative and auxiliary services shed much than 19,000 positions, creator and recreational activities mislaid complete 16,000, and building contracted by 15,500. Agriculture and home activity besides declined, continuing a longer-term shape of occupation losses successful these fields. The only agleam spots came from wellness and nationalist administration, which remained broadly stable.

Despite nan losses, Spain continues to support a historically precocious number of contributors to nan Seguridad Social (social security system), pinch 21.67 cardinal group successful activity astatine nan extremity of August. When nan seasonal effect is stripped out, employment really roseate by astir 30,000 compared pinch July. Over nan first 8 months of 2025, nan labour marketplace has generated much than 300,000 jobs, and adjacent to half a cardinal complete nan past 12 months.

This resilience reflects changes successful Spain’s labour model complete caller years. Reforms person reduced nan power of impermanent contracts, peculiarly successful nan backstage sector, encouraging much imperishable forms of employment. As a result, while seasonal swings still measurement heavy successful sectors specified arsenic tourism, intermezo and education, nan wide building of nan workforce has go little susceptible to abrupt fluctuations.

August is almost ever a difficult period for employment, arsenic nan highest of nan summertime tourer play draws to a close, schools and universities stay shut, and building activity slows. The 199,300 jobs mislaid this year, however, guidelines retired arsenic particularly severe, exceeding nan falls recorded successful some 2023 and 2024, which were already adjacent to 190,000. Analysts person pointed retired that nan sheer size of nan workforce earlier this twelvemonth makes nan driblet look starker, arsenic a larger guidelines of employment people produces bigger monthly corrections. Still, nan truth that unemployment remains astatine its lowest August level successful eighteen years is regarded arsenic a motion of strength. In opposition pinch erstwhile downturns, erstwhile occupation demolition was accompanied by soaring joblessness, this year’s figures propose that galore workers are moving betwixt contracts aliases sectors alternatively than leaving nan labour marketplace entirely.

Looking ahead, economists expect employment levels to rebound successful September, driven by caller contracts successful education, wellness and nationalist administration. Even so, nan August information highlights Spain’s continued vulnerability to seasonal pressures, and nan situation of building a labour marketplace that tin prolong stableness passim nan year.