Spain's unemployment rate falls to 9.87% in Q2, lowest in 18 years

By Marta Serafinko and Mireia Merino

July 28 (Reuters) - Spain's unemployment rate fell back below 10% in the second quarter of 2026, reaching its lowest level since 2008 even as the labour force rose to a record high, data from the National Statistics Institute showed on Tuesday.

The second-quarter unemployment rate dropped to 9.87% from 10.83% in the previous three months, the institute said.

The labour force grew by 272,700 from the previous quarter and by 452,500 from a year earlier to a record 25.27 million people.

Seasonally adjusted employment rose by 122,000 in the quarter to a record 22.67 million, extending annual job creation above 500,000 for a sixth consecutive quarter.

Spain's Ministry of Economy said the jobs created were largely permanent and private-sector positions, with temporary employment accounting for 15% of salaried workers, while higher-value sectors such as healthcare, education, professional services and finance recorded some of the strongest annual gains.

(Reporting by Marta Serafinko and Mireia Merino in Gdansk; Editing by Javi West Larrañaga and David Holmes)