Services and Construction Drive Job Creation in Spain’s Q3 2025 Economy

Spain's labor market experienced the creation of 118,400 jobs in the third quarter of 2025, representing the slowest growth for this period since 2019, when 69,400 jobs were added. Despite this modest increase, total employment hit a record high of 22.38 million, with 564,100 jobs created over the past year. The services sector emerged as the primary driver, increasing employment by 2.6% year-on-year. Particularly notable was social services excluding accommodation, which added 53,400 jobs (accounting for 17.2% of new job creation). Other thriving segments within services included vehicle sales and repairs, which generated 47,800 new jobs (14.8%), and retail, adding 46,800 jobs (2.3%). The construction sector is poised for growth amid rising housing demand, with specialized construction activities contributing 33,700 jobs and building construction 27,600 jobs in Q3. Overall, 58 out of 99 economic activity sectors reported positive employment changes, indicating diversified job creation across Spain's economy. Foreign workers played a significant role, capturing 225,500 of the new jobs, equivalent to 40% of total job growth in the last year. Additionally, a reduction in temporary contracts led to a lower temporary employment rate of 15.5%. These figures reflect a labor market adjusting to new dynamics but continuing to expand steadily, supported largely by service and construction sectors.