Spain jobless rate rises more than expected in first quarter

Spain’s unemployment rate rose to 11.36% in the first quarter of 2025, up from 10.61% in the previous quarter, marking the highest level in a year and surpassing market expectations of 10.7%.

Spain jobless rate rises more than expected in first quarter

This increase in unemployment was driven by a rise of 193,700 in the number of unemployed individuals, bringing the total to 2.789 million. At the same time, employment fell by 92,500 to 21.76 million, further highlighting the challenges facing the Spanish labor market. Meanwhile, the working population grew by 101,200, reaching 24.55 million, indicating that a larger share of the population remains actively engaged in seeking work despite the rising unemployment figures. The increase in unemployment was felt across both genders, with 77,200 more men and 116,500 more women joining the ranks of the unemployed. This contributed to a notable rise in the female unemployment rate, which climbed by 0.88 percentage points to 12.72%, while the male rate increased by 0.61 percentage points to 10.14%. These figures underscore the challenges faced by both men and women in a slowing economy, but particularly point to the difficulties that women are encountering in securing or retaining employment in the current environment. When examining unemployment by nationality, the data reveals a notable rise in joblessness among both Spanish nationals and foreign workers. Unemployment increased by 147,900 among Spaniards, including dual nationals, and by 45,800 among foreigners. This indicates that while foreign workers remain more vulnerable to job losses, the broader economic slowdown is affecting both domestic and international labor forces.

Job losses were widespread across all sectors

Job losses were widespread across all sectors of the economy. The services sector saw the largest increase in unemployment, with an additional 124,900 people losing their jobs, reflecting the ongoing strain on hospitality, retail, and other service-based industries. The industrial sector also saw a rise in unemployment, with 21,100 job losses, while the construction sector experienced a drop of 13,700 jobs, despite some efforts to maintain infrastructure projects. Agriculture saw a more modest increase in unemployment, with 4,500 additional individuals losing their jobs, but the sector remains vulnerable to external factors like weather conditions and international trade dynamics. Overall, the data paints a challenging picture for Spain’s labor market, with rising unemployment rates, job losses across all sectors, and increased pressure on both male and female workers. As Spain navigates a slow economic recovery and ongoing global uncertainties, the government's response to these labor market trends will be crucial in supporting job creation and reducing unemployment in the coming months.