Spain's Unemployment Rate Continues to Decline, Reaching New Lows in 2025

As of early 2025, Spain's labour market continues its positive trajectory, with unemployment rates reaching unprecedented lows. This trend reflects a stronger national economy, improved employment figures across multiple sectors, and rising confidence in Spain’s job market for both residents and expats.

Note: Spain measures unemployment using the Labour Force Survey (EPA), the country’s official method for tracking labour activity.

Current Unemployment Statistics

Recent data indicates a consistent decline in Spain's unemployment rate. These updates form part of broader employment improvements across the Spanish labour market.

• January 2025: 10.4% (Source)
• December 2024: 10.6%
• January 2024: 11.9%

These year-on-year improvements align with Spain’s strengthening economic outlook and growing demand for labour in 2025.

Contributing Factors to the Decline

Several factors continue to support Spain’s declining unemployment rate and improved labour conditions:

• Economic Growth: Spain's economy is projected to grow by 2.7% in 2025, driven by robust private consumption and investment. (Source)
• Labour Market Reforms: Recent employment reforms have made the market more flexible and competitive.
• Sectoral Expansion: Growth in tourism, manufacturing, technology, and logistics continues to generate new employment opportunities.

Youth unemployment—a longstanding challenge in Spain—has also begun to decrease slowly, though it remains above the EU average and continues to be a priority for policymakers.

Regional Variations

Unemployment in Spain varies significantly between autonomous communities. These differences are crucial for understanding the wider labour landscape.

Regions with Higher Unemployment

• Andalusia: 15.26%

Regions with Lower Unemployment

• Madrid: 8.58%

These discrepancies highlight the need for targeted regional strategies, particularly in southern regions where unemployment remains substantially above the national average.

Future Outlook

Projections indicate that unemployment rates will continue to decline between 2025 and 2027, though at a more moderate pace due to slower job creation and demographic shifts. (Source)

For further guidance on employment and residency, read: Working in Spain: A Foreigner’s Legal Guide

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Conclusion

Spain's declining unemployment rate in 2025 reflects ongoing economic recovery, improved labour conditions, and sectoral growth. While regional differences and youth unemployment remain areas to address, the overall outlook is increasingly positive. These are the key unemployment trends shaping Spain in 2025—and what workers, expats, and investors should expect moving forward.