By Data from the country’s statistics office INE shows that Spain employed a record number of people between July and September, largely due to the recovery of the tourism sector.
According to the latest figures from the Spanish statistics office INE, the total number of employed individuals has slightly increased, reaching a milestone of 21.27 million. This marks a new record for total jobs in the country. However, the unemployment rate has shown a slight increase from the previous quarter, rising to 11.84% from 11.60%. This is in line with the expectations of economists polled by FactSet. The total number of unemployed individuals also increased, reaching 2.86 million people.
Despite this slight uptick in the unemployment rate, it remains at its lowest level since the global financial crisis over a decade ago. The resurgence of the tourism industry has played a crucial role in boosting the job market in Spain this year. After the global pandemic, visitors are flocking to the country’s Mediterranean beaches and popular cities, leading to a surge in tourism-related jobs.
Compared to the same period last year, approximately 10% more tourists have visited Spain in the first nine months of this year. These figures are almost on par with those from 2019, indicating that the post-pandemic recovery is nearly complete. This significant rise in tourism has resulted in a surge in employment opportunities in the sector. As of last month, close to 14% of all registered workers were employed in tourism, as reported by the Spanish tourism ministry.
While there may be a slight increase in unemployment in the near future, ING economist Wouter Thierie believes that a sharp and prolonged rise is unlikely. He suggests that a growing labor population and slower job creation during an economic slowdown could cause the headline unemployment rate to exceed 12% next year. However, companies are expected to retain their workforce, especially considering the higher rate of permanent contracts following recent labor market reforms.
According to Thierie, the likelihood of a major turnaround in the labor market seems slim.
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