- In May 2025 average Social Security affiliation rose by 195,736 people, to 21,784,375, an all-time high.
- Registered unemployment fell below 2.5 million, a level not seen since 2008.
- With more jobs and fewer unemployed, difficulty hiring and retaining talent becomes a management issue for every company.
On 3 June 2025 the May employment figures were published. Average Social Security affiliation rose by 195,736 people from April to 21,784,375, the highest level in the historical series. Registered unemployment at the employment offices fell below 2.5 million, a figure not seen since 2008.
These are two different figures that should not be mixed up. Affiliation counts the people who pay contributions and is published at the start of each month; registered unemployment counts those signed up as jobseekers and does not include everyone who is looking for work. For a fuller picture there is the INE’s Labour Force Survey, published quarterly.
How to read the figures
May is usually a good month for employment because of seasonal activity, especially in hospitality and tourism, which is why the most reliable comparisons are year-on-year ones and those that adjust for seasonality. Even so, the record confirms a multi-year trend of sustained growth in the number of people working and contributing. Average affiliation, moreover, averages the whole month and smooths out single-day peaks, which makes it steadier than a snapshot figure.
There are also nuances. Some analyses, such as Funcas’s, warned that the pace of job creation was slowing, above all among foreign affiliates, who had been one of the engines of recent years. A record high does not guarantee that the pace will continue, and it is worth following the evolution month by month before drawing conclusions.
What it means for companies
A labour market with less unemployment generally means more competition for talent. Some sectors have vacancies that are hard to fill, and voluntary turnover tends to rise. For companies, the challenge is no longer just wage cost, but the ability to attract and keep people with conditions, training and flexibility. In that context, companies that used to compensate with turnover and short contracts may find that replacing a trained professional costs more than keeping them.
It also affects planning: hiring ahead of the high season, planning for holiday cover and adjusting schedules. It is also worth keeping working-time records and contract types, such as discontinuous permanent contracts, up to date, as they are often subject to checks by the Labour Inspectorate.
What to review
A good exercise is to go through the workforce with three questions: which roles are critical and at risk of leaving, which contracts expire in the coming months, and what it really costs to fill a vacancy, including the time the post stays empty. With those answers you can decide whether it pays to improve conditions, invest in training or reorganise tasks. It is also worth looking at the applicable collective agreements, because pay scales and agreed conditions influence the ability to attract staff.
Companies that work with collaborating self-employed people or seasonal contracts should also check that the classification of each relationship is correct: pressure from the demand for talent does not justify taking classification risks. Your labour adviser can help you apply these points to your case.
With as many people in work as ever, talent stops being a variable and becomes a strategy.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
