The number of jobless people in Spain declined by 1% in December compared to the month before, at 2.71 million, the lowest figure for December recorded since 2007.

This is according to data published on Wednesday as the country’s service sector provided thousands of new jobs.

Indeed, the number of unemployed people in Spain dropped by an overall 27,375, with over 25,000 finding jobs within the service sector, including hospitality, Reuters news agency reports.

Furthermore, last year Spain’s unemployment declined by 130,197 people. The Bank of Spain said in a recent report that it forecast the country’s unemployment rate to continue to fall between 2023 and 2026, albeit at a slower pace than in previous years, to hit 11.3% in 2026, from a forecast 12.1% in 2024.

Elma Saiz, Spain’s Inclusion and Social Security Minister stated that this data revealed the labour market’s structural changes and reforms were having a positive impact. Limits on the use of temporary contracts have been introduced within the reforms.

Moreover, jobs in the agricultural sector increased in December, but declined in construction and industry.

Unemployment amongst the under-25s fell 5.83% last month, by 12,014 people, to drop to an all-time low, according to the Labour Ministry.

In addition, Spain recorded a gain of 23,287 net formal jobs in December to 20.77 million jobs, as per another report released by the Social Security Ministry.

The tourism sector is boosting the number of jobs, in spite of surging prices and interest rate rises affecting economic growth, due to a robust increase in demand and prices, according to Pedro Aznar from Esade Business School.

“It appears that the Spanish economy has achieved a more dynamic labour market, able to function relatively well even at times without so much economic growth,” he commented.