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Spain's August job losses ease as foreign worker regularization cushions blow

Spain's August job losses ease as foreign worker regularization cushions blow
Business · 2026
Photo · Beatrice Romano for European Pulse
By Beatrice Romano Business & Markets Editor Sep 2, 2026 3 min read

August brought its usual seasonal chill to Spain's labour market, with the Social Security system losing 162,840 contributors and registered unemployment climbing by 44,419. The figures reflect the end of the peak tourist season and the pause in education-related hiring during the summer holidays.

Yet the drop in contributors is the smallest recorded in an August since the Covid-19 pandemic, and on a year-on-year basis Spain has added roughly 680,000 jobs. The unemployment rate, which stood at 9.87% at the end of the second quarter of 2026, is the lowest since early 2008, according to the National Statistics Institute.

One factor shaping the latest data is the ongoing regularization of foreign workers. By the end of August, some 337,917 people had been brought into the Social Security system through this process, helping to offset the seasonal decline in contributions. Foreign workers now account for more than 3.5 million contributors, or 15.9% of the total labour force.

Education and tourism drive the seasonal dip

Education was again the hardest-hit sector, with more than 78,000 teachers and other professionals leaving the system as contracts were interrupted for the summer. The winding down of the tourist season, which has seen record visitor numbers this year, also contributed to the rise in unemployment.

Spain's Second Deputy Prime Minister and Labour Minister, Yolanda Díaz, acknowledged the pattern: "As it happens every summer, when the holidays end, unemployment rises because of seasonal work." The increase in jobless claims is higher than in recent Augusts, but the total number of unemployed now stands at 2,356,000, the lowest for that month since 2007.

The regularization process has also meant that some newly registered foreign workers have signed on as jobseekers, adding to the unemployment tally. Minister for Inclusion, Social Security and Migration, Elma Saiz, described the overall trend as "historic job growth," pointing to the sustained expansion of the labour market.

While the August figures are a reminder of Spain's reliance on seasonal employment, the broader picture remains one of resilience. The country's tourism boom, which brought 58.1 million visitors by July, has been a key driver, though it also exposes the economy to seasonal swings. As the government continues its regularization drive, the hope is that the labour market becomes more stable and less dependent on the calendar.

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