Spain's labor market is experiencing a remarkable turnaround, with unemployment hitting its lowest point since May 2007 and employment reaching record highs. This positive trend is particularly notable given that May is traditionally a month of seasonal hiring linked to the summer season. The number of people registered with employment offices dropped by 36,323 compared to April, reaching 2.32 million, which is a significant improvement from the same month last year when 134,162 fewer people were unemployed. This decline is widespread across all productive sectors, though the group with no previous employment saw a slight increase.
Social Security membership is also on the rise, with an average of 231,975 contributors added each month, bringing the total to a record-breaking 22.3 million registered workers. This growth is evident across various demographic groups, including young people, women, men, self-employed workers, and foreign nationals, with the latter now accounting for around 15% of registered workers. The hospitality sector, driven by tourism and summer service activities, generated the most jobs in May, adding nearly 66,000 registrations.
Administrative and support services also saw significant gains, with around 27,000 registered workers added in the past month, bringing the total close to 1.5 million employees. Health activities and social services made the biggest contribution to employment growth year-on-year, with more than 77,000 additional registered workers. The special agricultural scheme regained members in May, adding almost 21,000 contributors, while the special scheme for domestic workers continued to reduce its registered members.
Self-employment is also at a new high, with 3.46 million people working for themselves, and almost 46,000 self-employed workers have joined the system in the past 12 months, particularly in professional, scientific, and technical activities. Women now account for 47.45% of all people in work, with the number of jobless women falling to 1.4 million, its lowest level for a May since 2008. Youth unemployment has also fallen to 164,955 people under the age of 25, the lowest level since records began.
Regional differences remain significant, with the Balearic Islands recording the largest monthly reduction in unemployment and the biggest rise in membership. Madrid led job creation in absolute figures year-on-year, with 127,841 more registered workers. Hiring activity is also strong, with 572,061 permanent contracts signed in May, accounting for 43.2% of the total.
The latest data on unemployment protection for April shows that 1.78 million benefits were paid, with the average amount received per beneficiary reaching 1,168.30 euros a month, an increase of 22.6 euros from the previous year. This positive trend in Spain's labor market is a testament to the country's economic resilience and the government's effective policies, but it also raises questions about the sustainability of such growth and the potential impact on social inequality and labor market dynamics.
