Spain unemployment rate falls to 9.87% in Q2, lowest in 18 years

• Spain's unemployment rate fell to 9.87% in Q2 2026, the lowest since 2008.
• Employment reached a record 22.8 million after 486,000 jobs were created in the quarter.
• The active population also increased, surpassing 25.2 million people.
• Services accounted for the majority of new jobs, driven by tourism.
• Permanent contracts now represent almost three-quarters of all workers.

Spain's labour market reached new record highs in the second quarter of 2026, with the unemployment rate falling to 9.87%, its lowest level since 2008. The Labour Force Survey (EPA) published by the National Statistics Institute (INE) indicated that employment rose to 22.779 million after 486,000 jobs were created between April and June. Simultaneously, unemployment decreased by 213,300 people, pushing the jobless rate below 10% for the first time in 18 years. The rise in employment coincided with the start of the summer season, which typically boosts job creation in the services sector. The active population also grew, surpassing 25.2 million. Services generated the most jobs, supported by tourism, though construction and industry also saw gains, while agriculture was the only sector to shed jobs. The Balearic Islands, Murcia, and Catalonia recorded the strongest job creation. Employment growth continues to be driven by stable, salaried work, with permanent contracts now making up nearly three-quarters of all workers and temporary contracts declining, particularly in the private sector. Full-time positions also constituted the majority of new hires.