Spain Unemployment Surprisingly Rises in July

Spain's registered unemployment increased by 19,517 from the previous month to 2.311 million in July 2026, marking the lowest July total since 2007. Market expectations were pointing to a 20,300-decline. The monthly rise was unusual, reflecting the fact that July has become less affected by seasonal patterns. Between 2010 and 2019, registered unemployment typically declined by an average of 45,467 in July, while since the labor market reform the average July decrease has narrowed to just 4,981. The increase was driven by higher unemployment in services (+8,211), construction (+2,433), and among first-time job seekers (+8,268), largely due to the ongoing extraordinary regularization process, which is allowing previously undocumented workers already living in Spain to register with public employment services for the first time. Separate Social Security data showed net employment increased by 79,567 in July, bringing total formal employment to 22.29 million.

Spain’s registered unemployment fell by 28.739 thousand from the previous month to 2.291 million in June 2026, marking the first time the total has dropped below the 2.3 million threshold since January 2008. Still, the decline was softer than the market expectations of a 40.8 thousand drop. Notably, female unemployment decreased by 15.801 thousand, pushing the total number of jobless women below 1.4 million for the first time since August 2008. Youth unemployment dropped 5,155 to a record low of 159,800. Unemployment decreased across services (-28,498), industry (-2,829), construction (-1,326), and agriculture (-384), while those without prior employment increased by 4,298. Separately, data from the Social Security Ministry showed Spain added 92,531 net jobs in June, bringing total employment to 22.21 million. Regionally, unemployment fell across 11 autonomous communities, with Andalusia (-11,597), Galicia (-3,587) and Castilla y León (-2,895) posting the largest declines.

The number of people registering as jobless in Spain fell by 36.323 thousand from the previous month to 2.321 million in May 2026, compared with market expectations of a 56.8 thousand decline. Unemployment decreased across all sectors, led by services with 29,829 fewer unemployed, followed by industry (-2,665), construction (-2,304) and agriculture (-1,628), while those without prior employment increased by only 98. Youth unemployment saw a drop of 4,738, reaching 164,955. Regionally, unemployment fell across all autonomous communities, with Andalusia (-9,125), Catalonia (-6,900) and Madrid (-3,834) posting the largest declines.