Spain’s labour force survey (EPA) for the second quarter of 2024, published on 26 July, puts employment at 21,684,700 and the jobless rate at 11.27%. What it says for businesses.
Spain’s National Statistics Institute (INE) published the second-quarter Labour Force Survey (EPA) on 26 July 2024. Between April and June the number of people in work rose by 434,700 (2.05%) to 21,684,700, an all-time high. Over twelve months there are 426,300 more people in work (2.01%). The number of unemployed fell by 222,600 in the quarter, to 2,755,300, and the jobless rate stood at 11.27%, the lowest since 2008.
What lies behind the figure
The second quarter is seasonally favourable: hospitality, retail and construction hire as spring and summer arrive. It is therefore worth looking at the seasonally adjusted data as well: according to INE, employment grew by 0.37% in the quarter and unemployment, seasonally adjusted, rose by 1.15%. By sector, services added 304,000 jobs, industry 63,400, construction 61,100 and agriculture 6,100.
The make-up of employment is improving. Employees rose by 377,100 in the quarter, of whom 272,000 on permanent contracts and 105,100 on temporary ones. Over a year, permanent employment is up by 649,300 and temporary employment is down by 207,100. Full-time employment grew by 433,500 in the quarter; part-time employment by only 1,200.
Private-sector employment reached 18,126,800, with 427,800 more in the quarter, and public-sector employment 3,557,900 (6,900 more). The number of Spanish nationals in work rose by 304,900 and of foreign nationals by 129,700. The labour force grew by 212,100 to 24.44 million, and the participation rate stood at 58.90%.
By sex, employment grew by 202,600 men and 232,100 women, and the female jobless rate was 12.61% against 10.08% for men. By region, the lowest rate was in Navarre (7.42%) and the highest in Andalusia (16.27%), which also had the biggest rise in employment in the quarter (101,200 more people in work). Among the unemployed, the number who lost their job more than a year ago fell by 17,600, while the number looking for a first job rose by 14,900.
What it means for businesses
For a company, the data point to a labour market with more people in work and more stable contracts, but also to an unemployment figure that, at 2.76 million people, is still high. Households in which all active members are unemployed fell by 109,600 in the quarter, to 868,300.
The Ministry of Economy, Trade and Business highlighted the dynamism of the private sector, which accounted for the vast majority of the jobs created in the quarter, and workers’ confidence.
What to keep an eye on
With lower unemployment, competition for skilled profiles may increase. It is worth reviewing retention and training policy, the collective agreements being renewed, and the temporary contracts that are about to expire or be converted into permanent ones. And it is worth remembering that a single quarter does not set the trend: the next EPA, for the third quarter, will be published in October. Ask your employment adviser how it affects your workforce.
The number of people in work is what makes the headlines; what matters most to a business is how many of those jobs are stable.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
