Spain hits lowest unemployment rate since 2008 - as number of workers surpasses 22 million for first time

SPAIN’S remarkable economic performance shows no sign of slowing down after the country hit its lowest rate of unemployment since 2008 – the year of the financial crash.

According to new data released by the National Statistics Institute (INE), Spain’s unemployment rate has fallen to 10.29%, the lowest figure for seventeen years.

The milestone marks a remarkable turnaround for Spain from the lows of the early-2010s when the unemployment rate spiked at an eye-watering 26.94%.

At the same time, the number of workers in the labour market has exceeded 22 million for the first time, with over half a million jobs added to the economy between April and June.

That means some 22.27 million people are now employed in the Spanish economy.

A boost in hospitality over the summer has provided tens of thousands of jobs.

The rise has been supported by strong increases in hospitality, manufacturing and commerce – although the majority (53%) of jobs have been handed to men.

The positive news comes after the INE confirmed growth of 0.6% in the first quarter of 2025 as Spain’s economy continues to outpace its European rivals.

Despite narrowly lagging behind the UK (0.7%), Spain remains ahead of Eurozone peers Italy (0.3%), Germany (0.2%), France (0.1%) and neighbouring Portugal (-0.5%).

In June, the Bank of Spain lowered its internal forecast for annual growth from 2.7% to 2.4%, lower than last year’s impressive figure of 3.2%, citing concerns over President Trump’s tariff war against EU member states.

However, this remains significantly higher than the Eurozone average of 0.9%.

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