Spain’s labor market achieved remarkable growth in 2024, creating 501,952 new jobs and closing the year with 21,337,962 Social Security affiliates, a record high for December. The country’s unemployment rate fell to 2,560,718 people, the lowest level in 17 years, driven by the Christmas hiring season and resilient economic activity. Despite a slight slowdown in growth compared to 2023, when over 539,000 jobs were added, this marks the second consecutive year of robust expansion.
Spain’s economy stands out among European powers, maintaining steady growth while Germany grapples with an industrial slowdown and France faces fiscal constraints. The sustained job creation underscores Spain’s economic resilience, fueled by a thriving labor market and strategic policies supporting employment growth.
Excluding the post-pandemic recovery year, 2024 represents the third-largest annual increase in employment since 2018, when 564,000 jobs were added. Since Prime Minister Pedro Sánchez took office, more than 2.3 million jobs have been created, reflecting consistent labor market expansion.
Unemployment figures also highlight Spain’s progress. The total number of unemployed individuals dropped by 146,738 over the year, representing a 5.42% decline, outpacing the 4.59% drop recorded in 2023. The labor reform implemented during this period has contributed to improved employment stability and job quality.
Women accounted for over half of the new jobs created, with female employment rising by 2.5% to 10.1 million, representing 47.4% of total employment—the highest share recorded since 2007. Since labor reforms, female employment has grown by 10.8%, compared to 2.9% for men. Unemployment among women also dropped to 1.53 million, the lowest figure since 2008.
Foreign workers played a key role in job creation, filling four out of ten new positions. Their participation in the labor force grew by 212,042 contributors, reflecting a 7.9% increase. The rise highlights Spain’s reliance on foreign labor to sustain economic growth and address workforce demands.
Second Vice President and Labor Minister Yolanda Díaz hailed the figures as evidence of Spain’s economic strength. She emphasized that more than two million jobs have been created since the government’s reforms and described the results as a testament to fighting for “more and better rights” for workers.
Job growth was particularly strong in agriculture, which saw a 6.23% rise, as well as transport (5.52%) and entertainment (4.59%). Health services, hospitality, and commerce added the highest number of jobs in absolute terms.
Regionally, employment growth was most pronounced in the Balearic and Canary Islands and Madrid, highlighting strong tourism and services activity. Despite flooding in Valencia in October, employment in the region showed resilience, adding 6,427 jobs in December alone.
December’s unemployment fell by 25,300 compared to November, with notable gains for young workers under 25. Their unemployment rate dropped to its lowest level since 1996, with just 185,801 unemployed. Over the year, effective unemployment—including temporary layoffs—declined by 68,000, signaling broader labor market recovery.
While Spain’s job market has shown stability, challenges remain. Job seekers decreased only slightly by 0.74%, leaving 4.4 million still seeking employment—similar to 2022 levels. Additionally, hiring slowed slightly, with permanent contracts dropping by 2.1% and temporary contracts rising by 6.3%. Critics point out that six out of ten permanent contracts lasted less than a year, questioning the sustainability of recent labor market gains.
Despite these concerns, the number of Social Security affiliates reached a record 21.3 million in December, with 2.3 million jobs created in the past four years. The self-employed sector also grew, reaching its highest level since 2002, while scientific and technical industries led the increase.
The government stressed that stronger employment levels bolster the sustainability of Spain’s pension system. The ratio of contributors to pensioners reached 2.44, ensuring long-term stability. Additionally, the labor market continues to shift toward higher-quality jobs, as evidenced by the growth in full-time permanent contracts.
