Spain: Less than 3 million unemployed for the first time since 2008

The number of unemployed in Spain fell to less than 3 million in May for the first time since 2008, thanks to a significant increase in job creation, according to figures released by the government today.

According to the Spanish Ministry of Labor, 2,92 million people were officially looking for work at the end of May, which is 99.512 less than at the end of the previous month (-3,3%).

"This is the lowest number since November 2008", ie since the beginning of the international financial crisis, the ministry underlines in a statement, reminding that this improvement occurred despite the "framework of high uncertainty internationally" which is mainly due to Russia war in Ukraine.

According to the Spanish government, the reduction reached 22,7% in one year, ie 858.259 fewer unemployed.

"Employment, stable and quality, is on the rise (…) We are making progress. "With equal opportunities and social justice", Spanish Prime Minister Pedro Sanchez welcomes this development in a message on Twitter.

This good momentum is explained by a large increase in job creation and mainly indefinite-term contracts: 730.427 indefinite-term contracts were therefore signed in May, the highest monthly number ever recorded.

Unemployment fell sharply among those under 25 (-9,9% in a month) but to a lesser extent among women (-2,65%).

These figures are announced after the government of Socialist Prime Minister Sanchez adopted in early 2022 an extensive labor market reform, which is considered the largest in the legislature, aimed at reducing the lack of security.

This text, which aimed to overturn a reform adopted by the People's Party in 2012, limited the possibilities of hiring on fixed-term contracts, making contracts indefinite "the rule and no longer the exception". It also restricted subcontracting by Spanish companies.

Spain was one of the worst-hit western economies by the economic consequences of its pandemic COVID-19 in 2020, recording a decline of 10,8% of its GDP, due to its strong dependence on tourism.

Half a million people lost their jobs in 2020 in the country, which has one of the highest unemployment rates in the OECD.

Source: RES-EAP