Spain’s unemployment rate falls below 11% for 1st time since 2008

OVIEDO, Spain

Spain’s unemployment rate has dropped below 11% for the first time in 16 years, according to data released by Spain’s National Statistics Institute (INE) on Tuesday.

After adding nearly 500,000 new jobs in 2024, the country’s unemployment rate dropped to 10.6% in the fourth quarter.

Spain’s jobless rate remains significantly higher than the average unemployment rate in the EU, which sat at 5.9% in November 2024, according to the latest Eurostat statistics.

However, it reclaims a level of employment not seen since the second quarter of 2008 — before the effects of the financial crisis devastated the country’s labor market.

The 2008 financial crisis hit Spain hard, especially its real estate sector, which had been fueling growth. In 2007, the country’s unemployment rate hit its lowest level of the century, at 8.01%.

To address the crisis, the EU began requiring austerity measures, which further exacerbated Spain’s unemployment rate.

By 2013, it peaked at 26.97%, with more than half of young people in search of a job.

Now 16 years later, it has almost recovered.

Spain’s economy has been seeing significant tailwinds, including record tourism numbers. It was crowned by The Economist as having the developed world’s strongest economy in 2024.

The country now has nearly 22 million people working and a population of around 48 million.

In a post on the social network Bluesky, Spanish Labor Minister Yolanda Diaz celebrated the latest employment figures and said the government’s progressive policies have also led to better livelihoods for those who are working.

Since 2018, Spain’s minimum wage has increased by 54%. A labor reform has also dramatically reduced the rate of temporary contracts in the private sector.

She said the country’s upcoming plan to reduce the workweek to 37.5 hours will also contribute to increased labor efficiency and quality of life for workers.