Spain’s unemployment rate fell by just over half a percentage point to 9.93% by the end of 2025, according to the latest Labour Force Survey figures released by the National Statistics Institute (INE).
The decline was driven by strong job creation, with 605,400 additional people finding employment over the course of the year, contributing to the drop in unemployment.
As a result, the jobless rate has dipped below the 10% mark for the first time since early 2008.
‘For the first time since 2008, unemployment drops below the 10% barrier. Spain approaches 22.5 million people employed, a new all-time high,’ Socialist Prime Minister Pedro Sánchez wrote on X (see below).
‘More stability, less youth unemployment, more quality jobs,’ he added.
Unemployment fell by 107,700 among Spanish nationals and by a further 28,300 among foreign residents living in Spain.
Despite the overall improvement, sharp differences persist between age groups. Youth unemployment remains particularly high at 23%, although this figure represents its lowest level since the 2008 financial crisis.
High youth unemployment continues to make it difficult for many young people to become financially independent, forcing large numbers to remain living with their parents well into their late twenties and early thirties. ALSO READ: Spain to impose tougher rental regulations, including caps on room rents and limits on seasonal lets.
Trends also varied significantly across economic sectors. Over the past year, unemployment declined in services, where it fell by 43,200, and in agriculture, down by 4,700. In contrast, it increased in industry by 4,200 and in construction by 2,600.
Spain’s active workforce continues to expand and now stands at roughly 25 million people, after growing by nearly half a million over the past year.
Although Spain’s economy has consistently outperformed many other developed countries in recent years, its unemployment rate remains the highest in the European Union.
The jobless rate peaked at around 27% in early 2013 following the financial crisis but has steadily declined since then, helped in part by a strong rebound in tourism after the Covid-19 pandemic.
The left-leaning coalition government has set a target of reducing unemployment to around 8% by the end of its term in 2027, a level it says would represent full employment.
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Encuesta de Población Activa #EPA. Cuarto trimestre 2025 @es_INE
— INE España (@es_INE) January 27, 2026
El número de ocupados aumentó en 76.200 personas respecto al trimestre anterior y se situó en 22.463.300.
En términos desestacionalizados la tasa de variación trimestral fue del 0,90%. El empleo creció en 605.400… pic.twitter.com/DrPSpre1K9
Por primera vez desde 2008, el paro baja de la barrera del 10%. España se acerca a los 22,5 millones de personas ocupadas, un nuevo máximo histórico.
— Pedro Sánchez (@sanchezcastejon) January 27, 2026
Más estabilidad, menos paro juvenil, más empleo de calidad.
Seguimos. https://t.co/Lm0aHYAnMd
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