The jobless rate in Spain saw a slight decline, ending the year on a relatively stable note, according to data from the national statistics agency INE. The rate dropped to 11.76% in the fourth quarter, down from 11.84% in the previous quarter, defying economists’ expectations of a slight increase. A poll compiled by FactSet had projected the rate to reach 11.9%.
During the summer, tourism played a significant role in boosting employment in Spain. However, with the conclusion of the tourist season, the sector’s contribution to the overall labor force slightly decreased. As per data from the tourism ministry, it accounted for approximately 12.5% of the workforce at the year’s end. The services sector experienced a loss of over 100,000 jobs in Q4. Conversely, there was job growth in agriculture, construction, and industry.
Overall, Spain added a substantial 783,000 jobs throughout the year, predominantly driven by an increase in permanent contracts.
The decline in Spanish joblessness is occurring within the context of a tight labor market across the wider eurozone. This trend has raised concerns about prolonged wage growth and its potential impact on inflation.