Spain unemployment jumps to 10.83%, sharpest Q1 rise since 2013

Spain's unemployment rate rose to 10.83 percent in the first quarter of 2026, up nine tenths of a percentage point from the 9.9 percent recorded at the end of 2025, after 231,500 people joined the ranks of the unemployed between January and March, according to the Active Population Survey released Tuesday by the National Statistics Institute (INE). Employment simultaneously fell by 170,300 positions, with the private sector bearing the brunt of job losses as 191,400 positions were destroyed. The total number of unemployed reached 2,708,600 people, the highest figure since the first quarter of 2025, while the employed population dropped to 22,293,000 workers. The INE described this quarterly increase in unemployment as the sharpest recorded for a first quarter since 2013, when joblessness surged by 257,200 people amid the aftermath of the financial crisis, while the decline in employment was the most pronounced since 2020 when the pandemic eliminated 285,600 jobs. However, the Ministry of Economy highlighted that seasonally-adjusted data showed employment actually grew by 96,800 positions in the first quarter and exceeded 22.5 million occupied workers for the first time ever, with 527,600 new jobs created over the past year. The unemployment rate of 10.83 percent, despite the quarterly jump, remains the lowest recorded for a first quarter since 2008. Economists and government officials attributed the quarterly figures to seasonal factors typical of the early year, when the end of the Christmas campaign weighs on hospitality, retail, and service sectors, compounded by unusually poor weather in January and February that temporarily dampened economic activity. The Ministry noted that employment is expected to recover in the coming quarters as tourism season begins and warmer weather drives hiring. Despite the quarterly setback, Spain created 527,600 net jobs over the past twelve months, permanent contracts increased by 539,700, and the temporary employment rate fell to 14.77 percent, indicating structural improvement in labor market quality.