July 2023 Marks Record Employment in Spain Amidst Minimal Unemployment Change
Spain sets a record with over 21 million registered workers in July 2023, amidst slight unemployment decline.
Key Points
- • Spain reached a record of 21.86 million registered workers in July 2023.
- • Unemployment decreased by just 1,300 individuals, totaling 2.4 million unemployed.
- • Permanent contracts rose to nearly 40% of all new contracts in July 2023.
- • Youth unemployment reached a record low of 164,146 for July.
In July 2023, Spain reached a historic milestone with a record 21,865,503 registered workers under Social Security, reflecting an increase of 4,400 from June. However, the country saw only a slight reduction in unemployment, dropping by 1,300 individuals to a total of 2,404,606 unemployed people, the lowest level since 2008. Typically, July experiences limited job creation due to seasonal employment trends, highlighted by a significant drop of 127,500 jobs in the education sector following the academic year’s end. Despite this, year-on-year figures reveal a remarkable addition of nearly 482,000 jobs, leading to an annual growth rate of 2.3%.
Notably, the proportion of permanent contracts surged to almost 40% of all new contracts, with the Ministry of Social Security reporting 609,964 permanent positions in July. This shift marks a significant transition from previous years characterized by high temporary employment rates, which now stand at a historic low of 13.5%, down from 32.6% in 2018. Among youth, improvements are even more pronounced; the temporary contract rate for workers under 30 has decreased from over 55% seven years ago to just 23.5%. Additionally, youth unemployment fell to a record low of 164,146, a decrease of 2,561 individuals and following 51 consecutive months of decline. This evolving employment landscape reflects the impacts of the labor reforms introduced in 2022 and ongoing changes in Spain's labor market dynamics.