Spain’s February job data hits best level since 2007

Record February jobs, but doubts remain on real data

Spain's labor market added 103,621 jobs in February, the highest increase for that month since 2007. Unemployment dropped by 7,452 people to 2.76 million. Average Social Security membership hit a new record of 20.7 million workers. The seasonally adjusted figure, preferred by the Ministry, also set a record at over 20.95 million after adding 73,492 contributors. Hospitality led growth with 29,230 more members, trinc by education with 28,941. Construction and manufacturing also performed well, adding 18,189 and 13,130 respectively. Conversely, healthcare shed 10,252 jobs as winter reinforcements ended, while retail lost 9,590 members, continuing its monthly decline. Unemployment fell across all sectors: services (-8,548), construction (-2,433), industry (-1,865), and agriculture (-315). Only first-time job seekers saw an increase, with 5,709 more registered at SEPE.

The unexplained contradiction: 7,000 fewer unemployed, 100,000 more employed

A simple arithmetic check raises questions. If unemployment fell by 7,452 but membership rose by 103,621, where did the other 96,000 workers come from? Officially, these are different metrics: membership counts average contributors, while unemployment registers job seekers at SEPE. However, the gap fuels skepticism. Some attribute it to inactive populations entering the workforce or migration flows. Others suspect accounting changes. "Can someone explain how 7,000 leave unemployment while 100,000 join payroll?" asks one participant. The answer is not in headlines.

Permanent-discontinuous contracts: the statistical blind spot

The main issue concerns permanent-discontinuous contracts. Since the labor reform, companies converted temporary contracts into indefinite ones with discontinuous activity, allowing workers to be registered only during active periods. When inactive, they may claim unemployment benefits if eligible. This means they do not contribute during downtime; they subtract from net gains. "Until detailed data on discontinuous workers is released, I doubt the figures," notes a participant. Critics point to two charts: one showing the shift from temporary to 'discontinuous' contracts, and another rising unemployment benefit claims. The Ministry reports historic low temporality rates, with 87.3% holding indefinite contracts. Critics argue this includes discontinuous workers who are often not working.

Minimum wage and youth: a recurring pattern

As last year, trinc the interprofessional minimum wage (SMI) hike, youth unemployment rose in February. The new SMI of €1,134, retroactive to January, coincided with 6,601 more unemployed under-25s. Last year, the same period saw 11,862 young people lose jobs. Correlation does not imply causation, but the pattern repeats. The Ministry attributes this to market dynamism and structural reforms. Social Security Minister Elma Saiz credited high employment levels to February's activity and the new labor framework. Some see the SMI rise as pushing out less qualified workers; others view it as monthly statistical noise.

Another metric: 25 shop closures daily

Employment grows, but small retail suffers. Data suggests 25 daily closures and only 476,000 open stores, a historic low despite peak population. El Corte Inglés Méndez Álvaro closed, and Gap exited Spain entirely. The contradiction is clear: hospitality and education create jobs while retail and healthcare destroy them. Hospitality drives employment, but wages often fail to cover living costs. "There are plenty of jobs, but poorly paid," summarizes a participant. Tourism had its best January with 4.8 million visitors spending €6.55 billion, yet seasonality and precariousness persist.

Interns and statistical cosmetics

Since February, all interns with training contracts—university or vocational students—contribute to Social Security even without pay. Previously, contributions were only required if remuneration existed. Participants argue this inflates membership numbers without creating real jobs. "It's Yolanda's magic," jokes one, comparing it to discontinuous contracts. Together, these factors allegedly boost affiliation stats without translating into rights and salaries. The debate is not about falsity, but what exactly is being measured.

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The labor market shows strength in headline numbers, but details raise unanswered questions. Discontinuous contracts, unpaid contributing interns, and the gap between membership and unemployment create a picture where records coexist with precariousness and business closures. With these elements, the debate on whether created jobs are quality or merely accounting entries remains unresolved.