14th February 2025
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Unemployment rate in Spain falls to lowest level since 2008 crisis

Unemployment in Spain fell last year to its lowest level since the 2008 global financial crisis, as the tourism-driven service sector performed strongly, official data showed on Tuesday.

The jobless rate in the European Union’s fourth-largest economy at the end of 2024 was 10.61%, down from 11.76% the previous year, the National Statistics Institute (INE) said.

A buoyant economy added 468,100 jobs in the last 12 months to reach a total of 21.8 million, the highest level ever registered.

A dynamic service sector slashed unemployment by 100,000 during 2024, a year in which the world’s second most-visited country received a record 94 million tourists. ALSO READ: Spain hits new record with 94 million international visitors in 2024, spending €126 billion.

The tourism sector represents around 13% of an economy which is clocking growth rates far outstripping its EU peers, providing vital political capital for the minority coalition government between the PSOE socialists and left-wing Sumar group.

‘Fewer women out of work, less temporary work and more quality employment,’ socialist Prime Minister Pedro Sánchez wrote on X (Twitter).

The Bank of Spain has predicted growth of 3.1% for 2024, in contrast with the 0.8% forecast for the eurozone by the European Central Bank.

The 2008 financial crisis and the collapse of a housing market bubble triggered soaring unemployment that peaked at around 27% in early 2013.

Spain’s recovery then suffered the shock of the Covid-19 pandemic that drove joblessness above 16% before bouncing back with the return of international travel and labour reforms. 

Yet the unemployment figures remain one of the highest in the eurozone. The government aims to bring it down to around 8% by 2027, which it says represents full employment in Spain.

ALSO READ: Spanish economy grew 0.8% in 3rd quarter, driven by consumption & exports.

 

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