According to government figures, the number of unemployed in Spain fell to three million in May, for the first time since 2008. This was due to an increase in job creation.
The Spanish Ministry of Labour reported that 2.92 million people were looking for work at May's end. This is 99,512 more than the month before (-3.3%).
"This is the lowest number since November 2008," i.e. Since the "beginning the international financial crisis", the ministry says. It also recalls that this improvement occurred despite the "context of great uncertainty" associated with the war in Ukraine.
The government claims that the unemployment rate fell to 22.7% in one year with 858,259 more unemployed. "Employment is stable and high quality, and we are making progress (...) On Twitter, Pedro Sanchez, the head of the left government, welcomed him.
This positive momentum can be explained by a sharp rise in job creation, in particular open-ended contracts. In May, 730,427 permanent contract were signed, which was the highest monthly number ever.
The unemployment rate fell especially among the 25-year-olds (-9.9% in a month) and less among the women (-2.65%).
These numbers were announced by the Socialist Prime Minister Pedro Sanchez, who adopted a massive labor market reform in 2022. This was considered to be the most important legislative action in order reduce precariousness. This text was intended to reverse a 2012 reform by the People's Party (right). It restricted the possibility of hiring for fixed-term contracts and made the permanent contract "the norm and not an exception". It also restricted the use of subcontracting for Spanish companies.
Spain was among the worst-hit Western economies in 2020 by the Covid-19 pandemic. It suffered a 10.8% decline in its GDP due to its heavy reliance upon tourism.
In 2020, half a million people lost their jobs in the country with one of the highest rates of unemployment in the OECD.