Spain Returns to Double-Digit Unemployment After Losing 170,000 Jobs in Early 2026

Back Above 10%

Spain's unemployment rate climbed back into double digits in the first quarter of 2026, reaching 10.83% — up from 9.93% at the end of 2025. The figures, published by the National Statistics Institute (INE), show approximately 170,300 jobs were lost in the opening three months of the year.

That is nearly double the 92,500 positions lost during the same quarter in 2025, and represents the highest first-quarter job loss figure since 2020, when the pandemic brought economic activity to a near-standstill.

What the Numbers Show

• Overall jobs lost in Q1 2026: 170,300
• Salaried employment fall: 102,900 workers (-0.5%)
• Temporary positions lost: 85,400 — the bulk of the losses
• Permanent contract positions lost: 17,600
• Permanent workers still employed: 16.24 million

The concentration of losses in temporary contracts is significant. Spain's labour market has long relied on a large pool of seasonal and temporary employment — particularly in tourism, hospitality and agriculture — and these positions are naturally more vulnerable to first-quarter downturns when visitor numbers are low and harvests have not yet begun.

The Government's Position

The Ministry of Economy moved quickly to contextualise the figures, noting that 10.83% is the lowest unemployment rate recorded in a first quarter since 2008. The government also pointed to the 12-month picture: over the past year, Spain has added 527,600 jobs overall — a net positive that puts the Q1 figure in a different light.

The argument is that seasonal first-quarter job losses are a structural feature of the Spanish economy, not a sign of deterioration — and that the comparison year of 2008 suggests the labour market is in better shape than the headline might imply.

The Wider Picture

Spain has historically carried one of the highest unemployment rates in the eurozone, with double-digit figures the norm for much of the post-2008 period. The dip below 10% at the end of 2025 was therefore a symbolically significant milestone — one that has now been reversed.

For expats in Spain — particularly those working, running businesses, or thinking about the economic environment for property investment — the Q1 figure is a reminder that the Spanish labour market remains structurally volatile, even when the underlying trend is positive. The next quarter, which captures the beginning of the tourist season, will be watched closely for signs of recovery.

This article is based on reporting from The Olive Press, published April 28, 2026, drawing on INE Q1 2026 Labour Force Survey data.