Spain loses nearly 200,000 jobs in worst August since 2019, adding 21,905 more people to ranks of the unemployed

As the summer season comes to an end, many job contracts also reach their deadline and the labour market is suffering as a result. Spain lost 199,300 jobs in August compared to July - the worst figure for this month since 2019. Only in 2018 and 2019 was the destruction of jobs greater, with 212,984 and 202,996 fewer jobs, according to data from the Ministry of Inclusion, Social Security and Migration. At the same time, public service employment (Sepe) statistics added 21,905 more unemployed.

The total number of unemployed reached 2,426,511 - the lowest figure for an August in recent years. At the same time, social security affiliates reached 21,666,203, 476,801 more than in August 2024. The rate of job creation, however, remains practically unchanged with respect to previous months.

Although the August social security enrollment figures are usually affected by seasonality, this year the loss of workers goes beyond tourism and hospitality, as it affects most economic activities. The drops in education (-75,869), administrative activities (-19,061), industry (-16,763) and construction (-15,455) stand out. But employment also fell in scientific and technical professions (-14,975), information and communications (-9,992) and public administration and defence (-9,951).

By branch of activity, registered unemployment only fell in agriculture, with 1,849 fewer unemployed (-2.36%). By contrast, services recorded 21,692 more unemployed (1.25%), followed by industry (+2,775) and construction (+2,745, 1.55% more than in July).

By region, the number of unemployed rose in 12 regions and only recorded decreases in five, mainly in Castilla-La Mancha (-1,047 unemployed), the Canary Islands (-873) and Navarre (-150). On the other hand, the largest increases were recorded in Catalonia (7,942 more unemployed), Madrid (4,214) and the Basque Country (4,178).

In terms of provinces, unemployment fell in 20 of them, led by Las Palmas (-645 unemployed), Ciudad Real (-330) and Albacete (-303). On the other hand, it increased in 32 provinces, especially in Barcelona (5,970 more unemployed), Madrid (4,214) and Vizcaya (2,037 unemployed).

Director of Randstad Research Valentín Bote has focused on the gap between actual unemployment and registered unemployment. "The former has not fallen since the labour reform and still stands at 3.24 million," he said. The forecast was that this August, the data for which is not yet available, would experience an increase of 850,000 job seekers with contracts, also known as fixed-term contracts.

For the Ministry of Inclusion, Social Security and Migration, the data is positive: "The labour market continues to perform favourably, with remarkable data on the quantity and quality of employment. We are above 21.6 million members, a very positive figure, which includes an outstanding growth in sectors with a high productive impact," said minister Elma Saiz.

In August, the Sepe database recorded a total of 1,039,962 contracts, 197 fewer than in the same month last year. Despite this slight drop, in the accumulated statistics for the year as a whole the total is 10,074,331, which is 79,105 more than in the first eight months of 2024. Of these, more than half, i.e. a total of 5.9 million, are temporary contracts, 153,393 more than in 2024. Indefinite contracts have fallen by 1.76% (to just over 4.14 million) so far in 2025.

Despite the labour reform, temporary employment continues rising this year. In August, it accounted for six out of every ten contracts registered at the Sepe offices. Permanent contracts fell by 1% compared with the same month last year. Within this category, in August there were 163,135 full-time permanent contracts, 91,589 part-time and 131,132 discontinuous contracts. Compared with August 2024, the former fell by 539 (-0.33%), the second by 1,776 (-1.90%) and the latter by 1,564 (1.18%).

The end of the summer season has also taken its toll on the self-employed. August closed with 8,662 fewer registrations in the Reta (the special scheme for self-employed workers) than in July. Despite this decline, according to data from the ministry, it is one of the most moderate falls in an August since 2008. In any case, July had already seen a sharper drop than in other years.

Spain ends the high summer season with a total of 3,405,711 self-employed workers affiliated to the Reta, narrowly maintaining the threshold of 3.4 million. This is 34,361 more than in August last year and represents the highest figure for this month so far in the 21st century.