Spain's job market reverses course amid geopolitical unrest

Spain's labor market took a sudden downturn in the first quarter of 2026, following a year-end milestone where unemployment fell below 10% for the first time in over a decade. A staggering 170,300 jobs were lost, pushing the number of unemployed to 2.708.6 million and the unemployment rate to 10.83% – the worst start to a year since 2013, according to the latest Active Population Survey (EPA) from the National Institute of Statistics (INE).

Technological employment remains a paradox

However, this gloomy outlook contrasts with the persistent strength of the tech sector. Despite the overall market's woes, employment tied to technology continues to show structural dynamics rather than cyclical fluctuations. The EPA data reveals that the occupation rate for tech-related fields remains the highest, with a workforce of 1.01 million as of 2025 – a 33% increase from 2020. This dominance has lifted tech's weight in the Economy from 4.1% to 4.7%.

However, there are signs of deceleration. The number of tech jobs grew by only 50,000 between the third quarter of 2024 and the same period in 2025, with the largest declines in architecture and engineering, and telecommunications. These downturns come as major companies like Meta and Amazon have recently undergone restructuring, shedding hundreds of jobs.

Contrary to the broader market's struggles, the tech profile remains the best-performing in terms of labor indicators within the EPA. People with IT training boast an unemployment rate of over 80%, significantly higher than the national average and other educational areas. Yet, this dominance is showing early signs of fatigue.

A report by UGT's José Varela warns of a