Spain sees soaring labor costs and persistent gender pay gap

Spain's labour market is under pressure as the National Statistics Institute (INE) reports a 5.3% rise in the cost per hour worked in the first quarter of 2026 compared with the same period in 2025, the highest increase since the second quarter of 2020 and marking 19 consecutive quarters of growth. The report also notes record‑high absenteeism and an unemployment pool of roughly 2.4 million people, making Spain the country with the most jobless workers in the European Union and OECD.

A separate analysis by the CCOO union highlights that the gender wage gap remains pronounced: on average, men earn 20.6% more than women, and men receive three times the overtime pay that women do. Women are over‑represented in lower‑paid sectors, part‑time contracts and are more likely to reduce their working hours for caregiving responsibilities, with nine out of ten reductions taken by women.

Both reports point to structural challenges for hiring, with rising social‑security contributions and other employer costs cited as major obstacles for job creation.