Impact of Employment Growth Drives 31% Drop in ERTE Numbers in H1 2025

In a significant shift reflecting Spain's changing economic landscape, the number of workers impacted by ERTE (Temporary Layoff) schemes has decreased by 31% in the first half of 2025. This decline is largely attributed to a robust increase in employment activity, which has reshaped labor dynamics across various sectors.

Specifically, as employment opportunities surged, many businesses have opted to hire rather than initiate layoffs. This evolution not only highlights a recovering economy but also indicates that sectors which previously relied heavily on ERTE programs are now seeing a resurgence in activity. For example, hospitality and tourism, two industries hard-hit during the pandemic, have begun to stabilize post-recovery.

The latest employment statistics reveal that the adaptation of companies to a more stable workforce is becoming increasingly prevalent. As more individuals return to work, the reliance on ERTE as a safety net has diminished; employers are prioritizing job creation over retention through layoff schemes.

This trend marks a notable turnaround from previous years when ERTE programs were a key component of economic support, facilitating temporary financial relief during downturns. The shift suggests a leaner, more dynamic labor force that is less dependent on government measures.

As of now, the ongoing improvements in employment statistics hint at sustained growth, signaling a positive outlook for the second half of 2025.