The unemployment of August is the highest since 2019. Photo credit: Rawpixle.com/Freepik
Spain’s labour market took a heavy hit in August, shedding 199,300 jobs in what has been described as the worst August for employment since 2019. Yet despite the steep fall in social security registrations, unemployment figures remain unusually low for this time of year, hovering at their lowest August level since 2007.
Spain’s Ministerio de Trabajo (Ministry of work) confirmed that the number of people registered as unemployed rose by 21,905 during the month, an increase of just under one per cent, bringing the total to a little over 2.42 million. While this uptick marks the third consecutive monthly rise, the overall level of unemployment remains far below where it stood a decade ago. Compared with August 2024, the total is down by more than 145,000 people, equivalent to a 5.7 per cent fall year on year. The largest contraction was felt in the education sector, which lost almost 76,000 jobs as contracts tied to the school year expired. Administrative and auxiliary services shed more than 19,000 positions, artistic and recreational activities lost over 16,000, and construction contracted by 15,500. Agriculture and domestic work also declined, continuing a longer-term pattern of job losses in these fields. The only bright spots came from health and public administration, which remained broadly stable.
Despite the losses, Spain continues to maintain a historically high number of contributors to the Seguridad Social (social security system), with 21.67 million people in work at the end of August. When the seasonal effect is stripped out, employment actually rose by nearly 30,000 compared with July. Over the first eight months of 2025, the labour market has generated more than 300,000 jobs, and close to half a million over the past twelve months.
This resilience reflects changes in Spain’s labour framework over recent years. Reforms have reduced the dominance of temporary contracts, particularly in the private sector, encouraging more permanent forms of employment. As a result, while seasonal swings still weigh heavily in sectors such as tourism, entertainment and education, the overall structure of the workforce has become less vulnerable to abrupt fluctuations.
August is almost always a difficult month for employment, as the peak of the summer tourist season draws to a close, schools and universities remain shut, and construction activity slows. The 199,300 jobs lost this year, however, stand out as especially severe, exceeding the falls recorded in both 2023 and 2024, which were already close to 190,000. Analysts have pointed out that the sheer size of the workforce earlier this year makes the drop appear starker, as a larger base of employment naturally produces bigger monthly corrections. Still, the fact that unemployment remains at its lowest August level in eighteen years is regarded as a sign of strength. In contrast with previous downturns, when job destruction was accompanied by soaring joblessness, this year’s figures suggest that many workers are moving between contracts or sectors rather than leaving the labour market entirely.
Looking ahead, economists expect employment levels to rebound in September, driven by new contracts in education, health and public administration. Even so, the August data highlights Spain’s continued exposure to seasonal pressures, and the challenge of building a labour market that can sustain stability throughout the year.
