The Spanish labour market experienced an unexpected slowdown in May. Data released on Tuesday regarding Social Security affiliations show an increase of only 195,736 new jobs. This marks the weakest May figure since the peak of the pandemic and, excluding that outlier year, is the worst May in the last ten years. To find an even weaker balance for this month, one would have to go back to 2013, when Spain was still recovering from the effects of the 2008 financial crisis.
Unemployment Falls Below 2.4 Million – A Historic Low
Despite the slowed employment growth, there is positive news on the unemployment front: registered unemployment decreased by 57,835 people in May. This brings the number of unemployed individuals registered at SEPE offices below the 2.4 million mark – a figure not seen in 17 years. This decline indicates that, despite the slower job growth, the labour market maintains some dynamism, leading to a reduction in long-term unemployment.
Analysis of Current Labour Market Trends
The current figures raise questions about the stability of the Spanish labour market. While the decline in unemployment figures sends a positive signal, the slowed creation of new jobs suggests a potential weakening of economic performance. It remains to be seen how these trends will develop in the coming months and what impact they will have on Spain’s overall economic recovery. Experts will closely monitor the development to determine whether it is a temporary dip or a more sustained trend. The Spanish government is expected to consider measures to stimulate employment growth and continue the positive trend in unemployment figures.
