The Spanish labor market continues to generate jobs, although a slowdown is anticipated for 2026. According to the Human Capital Outlook report from CEOE Aragón, the first quarter of 2026 shows reduced dynamism, despite the increase in wage employment and the decrease in the unemployment rate. However, companies are facing significant challenges in the labor sphere.
Increase in Employment and Productivity Challenges
The last quarter of 2025 recorded an increase in the number of salaried workers, while self-employment experienced a decline. Hours worked increased by 1.2% quarter-over-quarter, but the effective working time per occupied person was 1.7% lower than that recorded before the pandemic. This phenomenon is mainly due to the increase in the occupied population that did not work due to illness, accident, or incapacity.
On the other hand, productivity per hour worked has fallen by 0.4%, which poses a challenge for business competitiveness. This decline in productivity has kept GDP per occupied person unchanged for the second consecutive quarter.
Main Business Concerns
Companies have identified four central challenges: hiring difficulties, high absenteeism, overregulation, and rising labor costs. The president of the EY Talent and Innovation Institute emphasizes that people management has become a strategic axis, encompassing aspects such as absenteeism, occupational health, talent qualification, and international mobility.
In light of these challenges, business leaders are requesting that training align with the needs of the productive fabric, improvements in the management of sick leave, and the recovery of national social dialogue as a legitimate space for labor negotiation.
