In October, Spain experienced a rise in unemployment, although this increase was the smallest for the month since 2006, discounting the pandemic years of 2021 and 2022. According to data from the labor ministry released on Tuesday, the number of unemployed individuals grew by 26,769. This figure was slightly above economists' expectations, who had anticipated an increase of 26,500.
In comparison, September saw a smaller growth in unemployment, with an increase of just 3,164 from the prior month. Notably, October's total number of individuals without jobs marked a 5.7% decrease compared to the same month in the previous year, representing the most significant annual decline since September 2023.
The registered unemployment figure stood at 2.60 million individuals, the lowest for October since 2007. Within various industrial sectors, construction saw a decline in unemployment compared to the previous month, while the services sector experienced the largest rise.
A notable trend observed by the labor ministry was that 43.5% of the contracts recorded in October were permanent, indicating a significant shift towards stable employment.
Additionally, the S&P Global manufacturing purchasing managers' survey for October, released on Monday, highlighted an increase in factory employment in Spain. This growth was attributed to brisk business activity, resulting in a faster reduction in the backlog of work. Looking ahead, the survey indicated that Spanish manufacturers plan to hire more workers as they ramp up production to meet elevated demand.
Unemployment among women remained at its lowest level since 2008, while joblessness among men rose since September. Meanwhile, youth unemployment—pertaining to individuals under 25—climbed by 4.35% month-on-month, translating to an increase of 8,361 individuals.
The report further indicated that 1,703,095 people were claiming unemployment benefits at September's end, with a coverage ratio of 70.64%, the highest recorded since 2010.