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Spain's Unemployment Hits 17-Year Low as Employment Reaches Record High

Spain's Unemployment Hits 17-Year Low as Employment Reaches Record High
Business · 2026
Photo · Beatrice Romano for European Pulse
By Beatrice Romano Business & Markets Editor Jun 2, 2026 3 min read

Spain's labour market delivered its best May performance in seventeen years, with registered unemployment falling to 2.32 million and Social Security membership climbing to an all-time high of 22.3 million contributors. The data, released jointly by the Ministries of Labour and of Inclusion, Social Security and Migration, underscore the continued strength of the country's economic recovery, now in its second decade since the eurozone crisis.

The number of people registered as jobless fell by 36,323 compared with April, bringing the total to its lowest level for a month of May since 2007. Year-on-year, unemployment declined by 134,162. The drop was broad-based across all productive sectors, though the category of people with no previous employment recorded a slight uptick.

Record Membership Across Demographics

Social Security added an average of 231,975 contributors over the month, pushing the total to 22.3 million — the highest since comparable records began. The seasonally adjusted figure, which strips out calendar effects, stood at 22.1 million after 64 consecutive months of growth. Record levels were registered across multiple groups: young people, women, men, self-employed workers and foreign nationals. The latter reached 3.36 million contributors, now accounting for roughly 15% of all registered workers.

Hospitality led job creation in May, adding nearly 66,000 registrations compared with April, as the sector approached 1.68 million contributors. The surge is directly linked to the start of the summer tourism season, which typically boosts hiring in coastal regions and major cities. Administrative and support service activities also performed strongly, adding around 27,000 workers and edging close to 1.5 million employees. In year-on-year terms, health activities and social services made the largest contribution to employment growth, with more than 77,000 additional registered workers.

The special agricultural scheme regained members in May, adding almost 21,000 contributors, though it still shows a negative balance compared with the previous year. By contrast, the special scheme for domestic workers continued to shrink both monthly and annually.

Self-employment reached a new high of 3.46 million people working for themselves. Over the past twelve months, nearly 46,000 self-employed workers have joined the system, particularly in professional, scientific and technical activities. By gender, Social Security recorded 11.7 million male contributors and 10.6 million female contributors, with women now representing 47.45% of all people in work.

Unemployment by Demographics and Regions

The number of unemployed women fell to 1.4 million, its lowest for a May since 2008, though it remains above the slightly more than 900,000 men registered as jobless. Youth unemployment dropped further to 164,955 people under 25, the lowest level since the series began, with fewer unemployed women than men within that age group.

By sector, services recorded the largest fall in unemployment, with 29,829 fewer jobless people than in April. Unemployment also declined in industry, construction and agriculture. The only group that increased was people with no previous employment.

Regional disparities remained pronounced. The Balearic Islands recorded the largest monthly reduction in unemployment and the biggest rise in membership, with almost 48,200 more contributors than in April. In year-on-year terms, Madrid led job creation in absolute figures, with 127,841 more registered workers than a year earlier.

On the hiring front, 572,061 permanent contracts were signed in May, accounting for 43.2% of the total. This type of contract increased both compared with the previous month and in the year to date. Meanwhile, the latest available data on unemployment protection, corresponding to April, show that 1.78 million benefits were paid. The average amount received per beneficiary reached 1,168.30 euros a month, 22.6 euros more than a year earlier.

The positive labour data come as Spain's economy continues to outperform many of its European peers, though challenges remain, including high youth unemployment and regional imbalances. The summer season is expected to provide further momentum, particularly in tourism-dependent areas.

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