Spain's wages and labour costs hit highest level in 26 years

Labour costs and wages in Spain have reached levels not seen in the last 26 years. In the first quarter of 2026, the average labour cost per worker reached 3,278 euros, 4.9% higher than in the first quarter of 2025.

Wages (also a labour cost) reached 2,403.8 euros per worker per month, the highest figure for a first quarter since records began, after rising 4.9% year-on-year in gross terms.

According to data from the national institute of statistics (Ine), the other component of labour costs (known as other costs) totalled 874.21 euros per worker per month in the first quarter, representing a year-on-year increase of 4.8%. The most significant component of other costs is mandatory social security contributions, which rose by 4.5% year-on-year in the first quarter of 2026.

The rise in labour costs between January and March was the highest since the fourth quarter of 2023. With this new increase, there have been 21 consecutive quarters of increases.

These figures come amid a complete standstill between the trade unions CCOO and UGT and the employers' association CEOE regarding the renewal of the national agreement for employment and collective bargaining (AENC).

The last agreement expired in 2025. Since then, there have been no general guidelines to direct collective bargaining at the more than 4,500 negotiating tables across the country to agree on the terms of expiring collective agreements.

The Ine also reported on Monday a total of 159,785 job vacancies in the first quarter of the year, the highest figure since 2013. The start of summer always increases the need for labour to cope with the tourist season.

Of the total number of vacancies, 86.6% were in the services sector, with 138,379 vacancies, while 7.7% were in industry (12,261) and 5.7% in construction (9,145).

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