Spain, unemployment at its lowest since the great crisis of 2008
The opening to migrants decided by PM Sanchez is one of the keys to the growth of the economy and employment in the Iberian country
Spain's unemployment rate fell to its lowest level in 18 years in the fourth quarter of 2025, according to data published yesterday by the INe. Showing signs of stabilisation in one of Europe's weakest labour markets.
The unemployment rate, down to 9.93%, is the lowest since the 2008 crisis - which hit Spain hard (bringing the jobless to nearly 27%) - but remains among the highest in the EU. Youth unemployment, also at its lowest since the crisis, remains at 23%. However, strong economic growth and the labour reform of 2021, which restricts the use of fixed-term contracts, are charting a course towards steadily higher employment rates. Today, almost 22.5 million people are employed in Spain and in 2025 the Spanish economy created the most jobs in the Eurozone: a total of 605,400 (92 % in the private sector).
The openness to immigrants, decided by the government of Socialist Pedro Sanchez, in contrast to much of Europe, has been a decisive factor in filling labour demand in sectors such as catering, construction, hotels and personal care. Sanchez is negotiating with left-wing allies to grant visas to an additional 500,000 migrant workers who have been in Spain for at least five months and have no criminal record.
"Immigration sets us apart from other countries," said Raymond Torres of the left-leaning think tank Funcas. "It has provided support for growth in sectors such as hospitality and care, which otherwise would have faced labour shortages."
The positive employment figures underline the strength of the eurozone's fourth largest economy and may also distract attention from the recent fatal train accidents and the controversy over high-speed rail lines that have put Sanchez under pressure.
