Employment hits record 3.95 million, though jobless rate edges up slightly

Catalonia's labour market set a new record in the third quarter, driven by the peak tourist season.

According to the Active Population Survey (EPA), the number of people in work reached more than 3.9 million, a new all-time high.
Between July and September, employment rose by 5,800 (+0.15%) compared with the previous quarter, a more modest increase than in recent years. The last time growth was lower was in 2012.

Year-on-year, however, employment grew by 89,400 (+2.32%), a more significant rise than in 2024.

Meanwhile, the unemployment rate stood at 8.18%, virtually unchanged from the previous quarter and 0.6 percentage points lower than a year earlier (8.83%).

Rise in unemployment

According to figures released on Friday by Spain's National Statistics Institute (INE), the number of people registered as unemployed in the third quarter rose slightly to 352,100 – up by 3,800 compared with Q2 (+1.09%) but 21,800 fewer than a year ago (–5.83%).

The rise in unemployment is the first Q2 to Q3 increase since 2022, and in absolute terms, the largest since 2020 (+61,300).

The Catalan government said that they cannot talk about "deceleration" of labor market despite figures released on Friday.

"The numbers are proof of a new trend," Paco Ramos, labor secretary, said during a press conference on Friday. He added that the quarter "could have been better" in terms of labor market, if there was no decrease in the number of hospitality sector employees, which fell by 9.8%, around 30,800 workers.

Spain

Spain also reached a new record in the third quarter, with 22.38 million people employed. 

Compared with the previous quarter, employment grew by 118,400 in the period from July to September (+0.53%).