For the first time in 17 years, registered unemployment figures in Spain have fallen below the symbolic threshold of 2.5 million. According to the latest data from the Ministry of Labor, the number of individuals signed up as unemployed at the State Public Employment Service (SEPE) decreased by 57,835 in May, resulting in a total of 2,454,883 job seekers.

Despite this positive development, job creation last month was not particularly significant. Historically, May has been a strong month for the labor market as businesses begin to prepare for the summer season. This year was no exception, with the Social Security system gaining 195,736 new contributors, setting a new record of 21.78 million affiliates. Nevertheless, this increase was the smallest for a May since 2013, a year when the Social Security system was still experiencing annual job losses close to 4%. The anomalies of 2020 are excluded from these statistics due to the pandemic's distorting effects.

The recent employment figures from the Ministry of Social Security do not suggest a slowdown in the labor market. In fact, the employment rate continues to grow annually by over 2%, with 462,581 more affiliates compared to the previous year. However, this pace is slightly lower than in most months of 2025, which saw increases above 2.3% year-on-year.

Several factors could contribute to this slight deceleration in job creation. The continual decline in temporary employment reduces workforce turnover, thereby limiting new affiliations. Additionally, the figures for May come just after Easter, when many businesses had already hired staff they retained into the following month without creating new positions.

Seasonally adjusted figures, which provide a clearer picture by removing calendar and seasonal effects, show a more modest increase of 20,790 new affiliates in May and a smaller reduction in unemployment, with 12,250 fewer job seekers than in April.

Analyzing the sectors with the most robust job creation in May reveals a promising summer season. The hospitality industry alone generated 76,120 jobs, accounting for four out of every ten new positions in May, marking a 5% increase from April. Other sectors poised for growth include leisure and entertainment, which added nearly 5,500 contributors (up 1.67% from April), and administrative tasks, which grew by 22,000 workers (a 1.51% increase).

While other sectors also showed dynamism, their employment gains were comparatively modest. The transportation sector added 8,014 employees, a 0.9% increase; public administration and defense grew by 8,761 workers, up 0.74%; and construction saw a rise of 7,265 employees, a 0.71% increase. Employment in commerce grew by 9,346 contributors (a 0.3% increase), while the manufacturing industry saw a rise of 7,227 affiliates, a 0.36% increase from April.

Agriculture reported impressive employment numbers in May, with 18,230 new affiliates in the special agrarian sector, a 2.7% increase from April, and 2,000 more salaried workers in the general regime, marking a 2.4% inter-monthly increase. Conversely, education, typically a leader in employment contracts except at the end of the school year, experienced a sharp slowdown last month, with only 800 new employees.

Regarding the improvement in contract quality, there were mixed signals last month. The tourism sector's momentum led to a rise in temporary and discontinuous permanent contracts. Of the 188,250 contracts signed, 44,794 were permanent (either regular or discontinuous), representing a 9% increase from April. However, temporary contracts surged by 22.5%, totaling 143,456 new contracts, more than double the rate of permanent contracts. Consequently, the percentage of initial permanent contracts dropped to 41.6%, the lowest of the year.

Among these new permanent contracts, discontinuous permanent contracts were the most common in May, totaling 31,624, followed by full-time permanent contracts at 9,039 and part-time at 7,361.

Employment activity varied significantly across different regions. The Balearic Islands, once again demonstrating the influence of tourism, led the way with an 8.7% increase in its workforce, adding 51,237 employees from April. Murcia (up 1.46%, nearly 10,000 workers) and Extremadura (up 1%, adding 4,400 employed individuals) followed, exceeding the national average.

In contrast, the Canary Islands were the only region to experience job losses, with a slight decrease of 809 workers, a 0.1% drop. In Madrid, despite benefiting from a long holiday weekend on May 1st and 2nd, and the capital's main festivity on the 15th, employment growth was tepid, increasing by only 0.35% (13,100 more employed individuals).