Spain Records Unemployment Below 10% for First Time Since 2008

By Staff, Agencies

Spain’s unemployment rate fell to 9.93% in the fourth quarter of 2025, dropping below 10% for the first time since the 2008 financial crisis and marking the country’s lowest level in nearly two decades.

Employment reached a record 22.46 million workers, with the private sector accounting for roughly 92% of new jobs created in 2025.

The data point to a significant turnaround for a country that once had one of the highest unemployment rates in the European Union.

Economy Minister Carlos Cuerpo said the figures reflect a stronger and more stable labor market, emphasizing improvements in job quality alongside rising employment.

Spain added more than 600,000 jobs year-on-year, driven by sustained economic growth and labor market reforms aimed at reducing excessive reliance on temporary contracts.

The milestone contrasts with trends in several other major European economies, many of which have struggled to achieve comparable reductions in joblessness.

While Spain’s unemployment rate remains higher than the EU average, the latest figures underscore a substantial structural improvement after years of chronic labor market weakness.

Analysts say continued growth, labor reforms, and resilient private-sector hiring have played a central role in Spain’s recovery, positioning the country as one of the stronger performers in the eurozone labor market.