The number of people registering as jobless in Spain declined by 57,835, or 2.3%, over the month to reach 2.455 million in May 2025, dropping below the 2.5 million mark for the first time since July 2008.
Spain jobless falls less than anticipated
This marked a significant milestone in Spain’s labor market recovery, although the reduction fell slightly short of analysts’ expectations, who had forecast a decrease of around 68,500 people. The decline in unemployment was broad-based, touching all key economic sectors.
In May, the services sector experienced the largest drop in joblessness, with 42,930 fewer unemployed, representing a 2.4% decrease. This sector remains crucial to Spain’s economy, employing a large share of the workforce, so the improvement here signals positive momentum. Construction followed with a 3% decline, equivalent to 5,562 fewer unemployed, while industry and agriculture also saw notable reductions of 4,574 (-2.4%) and 2,259 (-2.8%) respectively. These numbers suggest that economic activity is picking up across diverse areas, potentially driven by both domestic demand and external factors.
Youth unemployment shows particular improvement
Additionally, the number of previously unemployed individuals—those re-entering the job market after a period of unemployment—also fell by 2,510, a 1.1% decrease, indicating a broader strengthening in employment conditions. Youth unemployment showed particular improvement, with the number of jobless under 25 dropping by 6,426 people or 3.6%, bringing the total youth unemployment figure to 171,003. This is the lowest level ever recorded for this demographic group in Spain, pointing to encouraging trends for young workers entering the labor market.
Despite the overall positive signs, experts caution that structural challenges remain, such as the need to create more high-quality, stable jobs and address regional disparities in employment rates. Still, the latest figures provide a hopeful outlook for Spain’s economy as it continues to recover from previous downturns and adapts to changing global economic conditions.
