Spanish unemployment sees 1% dip in Dec, reaches lowest levels since 2007

Spain unemployment declines: Spain witnessed a 1 per cent decline in registered unemployment in December compared to the previous month, according to data released by the Labour Ministry on Wednesday. The total number of unemployed individuals reached 2.71 million, marking the lowest December figure since 2007 when it stood at 2.13 million.

Service sector shines

The drop in joblessness for December amounted to 27,375 individuals, with over 25,000 of those belonging to the service sector, notably hospitality. While unemployment decreased in agriculture, it experienced a slight increase in construction and industry.

A positive trend was observed in youth unemployment, with a 5.83 per cent decrease in December, translating to 12,014 fewer individuals under the age of 25 unemployed, the lowest on record, as noted by the Labour Ministry.

Employment jumps up

Spain's job market also saw an addition of 23,287 net formal jobs in December, bringing the total to 20.77 million jobs, as reported by the Social Security Ministry.

The Bank of Spain, in a recent report, anticipates a continued decline in Spain's unemployment rate from 2023 to 2026. Although the pace is expected to slow compared to recent years, the rate is forecasted to decrease from an estimated 12.1 per cent in 2023 to 11.3 per cent in 2026.

Commenting on the positive data, Inclusion and Social Security Minister Elma Saiz highlighted the impact of labour reforms, social dialogue, and government policies, stating that these factors are contributing to positive effects on the labour market.

(With Reuters Inputs)