In 2023, Spain led the creation of jobs in the European Union, generating 616,000 jobs, which was higher than the combined number of jobs created in Germany and France. Italy also showed improvement with 423,000 new jobs. However, Spain, with a population of 48 million, had the highest job creation rate. Overall, the 27 countries in the EU created 1.89 million jobs, with Spain accounting for 32.5% of them. Despite this, Spain had the highest unemployment rate in the group of countries, at 12.2% compared to the EU average of 6.1%.
In 2022, Spain had an even stronger job creation with 689,000 new jobs, but the growth rate was lower compared to previous years. The EU as a whole created 4.18 million jobs, with Germany leading the way with 956,000 new jobs. Italy, France, and the Netherlands also had significant job creation in 2022. In 2023, however, these countries created fewer jobs while Spain’s job growth moderated. Despite this, Spain continued to lead in job creation, accounting for a third of the new jobs in the EU.
During the pandemic year of 2020, Spain was the third country in the EU to lose the most jobs, with 660,000 fewer positions. However, the labor market has since recovered from this setback, with Spain faring better than other major EU countries like Germany and Italy. The job market in 2023 reflects the unusual economic situation in Europe, with southern countries like Spain experiencing higher growth rates than their northern counterparts. This is a historical anomaly, as traditionally the northern countries have been more economically stable.
Spain also saw the largest decrease in unemployment in absolute terms in 2023, with 142,000 fewer unemployed people compared to the previous year. This decline was greater than in Italy, Greece, and Germany. Other countries, such as France and Portugal, saw an increase in unemployment, leading to a net decrease of 150,000 in the number of unemployed people in the EU as a whole. Despite this improvement, Spain still has the highest unemployment rate in the EU, surpassing countries like Greece, Italy, and Sweden.
The unemployment rate in Spain decreased to 12.2% in 2023, down from 13% in 2022 and 14.9% in 2021. This is a significant improvement from the peak of 26.1% in 2013 during the Great Recession. However, it remains the highest unemployment rate in the EU, double the average of the 27 member states. Countries like the Czech Republic, Poland, and Malta have the lowest unemployment rates in the EU. This trend in job creation and unemployment rates highlights the economic disparities within the European Union, with Spain leading the way in job creation but still facing challenges with high unemployment rates.
