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Spain's Economy

Youth Unemployment

Why Spain's unemployment rose above 26% in 2013 with youth unemployment over 50%, and why Spain's labour market has been so prone to high joblessness.

Spain has struggled with unemployment.

Peak

Unemployment peaked around 26% in 2013; youth unemployment topped 50%.

Dual labour market

  • Permanent workers had strong protections.
  • Many young people had temporary contracts, the first to be cut in downturns.

Effects

  • Young people emigrated or lived with parents longer.
  • The Indignados protests began in 2011.

Improvement

Unemployment fell to around 11% by 2025, still among the EU’s highest.

Informal economy

Some unemployed work informally, so statistics may overstate joblessness.

The temporary contract

A young graduate signs a series of short contracts, never getting a permanent job.

Thinking high unemployment means no one works

Informal work and emigration also play roles.

Key takeaways
  • Unemployment peaked at about 26% in 2013.
  • Youth unemployment topped 50%.
  • A dual labour market hurt youth.
  • It fell to about 11% by 2025.
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