Spain Ends 2024 with Nearly Half a Million New Workers as Unemployment Drops by 25,300 in December

Spain's labor market demonstrated solid growth in 2024, surpassing 21.3 million contributors to the Social Security system. The year concluded with an increase of nearly half a million workers compared to the previous year, highlighting the positive employment trends observed in recent months. In December alone, there were an average of 21,337,962 contributors, marking a 2.41% rise year-on-year and an increase of 35,499 from November, according to data released by the Ministry of Inclusion, Social Security, and Migration.

Officials from the ministry noted that almost 2.3 million jobs have been created over the past four years. The Minister emphasized the importance of these figures, acknowledging that while they reflect national success, there remains concern for those still seeking better employment opportunities.

On the unemployment front, figures have decreased by 5.4% year-on-year, with a total of 25,300 fewer unemployed individuals since the previous month, bringing the total to 2,560,718. This represents the lowest unemployment figure since August 2008. The Second Vice President and Minister of Labor underscored that employment is crucial for economic growth.

The December affiliation data, released on Friday, represents the highest number of contributors recorded for that month to date, although it remains slightly below the record high of June, which typically sees a surge in summer hiring, reaching 21.56 million contributors.

While the new affiliations in December were not as substantial as the dramatic increase seen in October, which saw 134,307 new contributors, the annual growth rate in job creation accelerated in December, doubling from 2.4% in November to 5.4% for the month. This month also recorded the best December figures since 2018, excluding the unique circumstances surrounding the pandemic's impact in 2021.

The majority of new jobs were in agriculture, livestock, and fishing, which added 27,567 workers. The services sector followed closely, contributing 25,000 new contributors, with a 1.1% increase in commerce, although the hospitality sector experienced a decline of 1.9%. The industrial and construction sectors faced setbacks, losing approximately 6,000 and 9,000 jobs, respectively.

When adjusted for seasonal variations, which the Social Security system uses to account for typical fluctuations in the labor market, employment still rose by 42,700 contributors, marking 56 consecutive months of growth.

The total number of job seekers has reached its lowest December level since 2007, with 2.56 million unemployed individuals, a decrease of 25,300 from November and 146,738 fewer than at the close of 2023, representing a 5.42% reduction. The data indicates a decline in unemployment within the services sector by 1.15% and 2.36% in agriculture, while there were slight increases of 2.26% in construction and 0.44% in industry.

Despite the drop in unemployment being the most significant for December since 2007, the annual reduction rate has slowed down. This December saw the least amount of job loss since 2011, when a trend of positive job reduction began, excluding the pandemic impact in 2020.

In terms of job security, there are now nearly 3.7 million more workers on permanent contracts compared to before the labor reform, totaling almost 14.7 million. Since the start of 2024, 553,000 permanent contracts have been recorded, with the temporary employment rate dropping to 12.8%, nearly a full percentage point lower than at the end of 2023.

Officials assert that these statistics disprove the misconception that Spain's labor market relies heavily on temporary positions. They highlight that since the labor reform was implemented, over 30 million temporary contracts have been avoided. Furthermore, it is noted that 40% of new contracts within the last year have been permanent, a dramatic increase from the previous rate of 10% before the reform.

There has also been a notable rise in the number of female contributors, which has surpassed 10.1 million, the highest level recorded, now representing 47.4% of the total workforce. Additionally, the number of foreign workers has significantly increased, with nearly 2.9 million foreign contributors making up 13.5% of the total. The growth in employment among those under 30 has surged by 20.5% since the labor reform, significantly outpacing the overall economic growth rate of 9.3%.

December also saw the highest number of self-employed individuals since records began, totaling 3,399,170, an increase of 1,098 from November and 42,300 compared to the end of 2023. About half of these self-employed workers are engaged in high-value professional activities. Over the past year, there has been a notable increase in registrations of self-employed individuals in the information and communications sectors, as well as scientific and technical professional activities.

The job creation trend in Spain is outperforming that of other major economies in the region, with an overall increase of 8.1% since late 2021, compared to only 2.3% in France and 1.7% in Germany. In terms of regional performance, all provinces reported job growth in December, particularly notable in Jaén (5.3%), Santa Cruz de Tenerife and Málaga (3.4%), Madrid (3.1%), and Toledo (3%). Valencia also showed a 2.5% increase year-on-year, despite concerns regarding the impact of adverse weather conditions on the labor market, with the Ministry indicating that employment patterns have normalized.