Spain jobless falls less than expected

The number of people registering as jobless in Spain declined by 48,920, or 2%, over a month to 2.406 million in June 2025, marking the lowest level of unemployment since June 2008.

Although the decrease was smaller than the 69,500 drop expected by analysts, it still reflects a continued improvement in the labor market amid sustained economic recovery and robust seasonal hiring during the summer months.

Unemployment fell across all sectors in June, with services seeing the largest decrease (-38,253; -2.2%), driven by strong demand in tourism, hospitality, and retail. Industry followed with a decline of 4,589 (-2.4%), while construction and agriculture registered more modest drops of 3,029 (-1.7%) and 218 (-0.3%), respectively. The number of people previously unemployed also fell by 2,831 (-1.2%), indicating progress in reintegrating long-term jobseekers into the workforce.

Meanwhile, unemployment among young people under 25 dropped by 4,296 (-2.5%) in June compared to the previous month, bringing the total to 166,707—the lowest figure ever recorded for this demographic.

This suggests that recent government initiatives aimed at boosting youth employment, including training programs and incentives for firms hiring young workers, may be starting to yield results.

The decline in joblessness was broad-based geographically, with all autonomous communities reporting improvements. The largest decreases were recorded in Andalusia (-6,974), the Community of Madrid (-6,571), and Castilla y León (-4,840), reflecting both regional economic momentum and sectoral growth in these areas.

Overall, the data reinforce positive trends in Spain's labor market, although challenges remain in achieving more inclusive and long-term employment stability.