Spain's labor cost hits 26‑year high in Q1 2026

Spain's average labor cost per worker and month rose 4.9% year‑on‑year in the first quarter of 2026, reaching €3,278 – the highest level recorded since the series began in 2000. The increase marks the 21st consecutive quarter of growth, the longest streak in the data set. Salaries also climbed 4.9% to an average €2,403.8 per worker and month, while non‑salary costs rose 4.8% to €874.21. The main driver of non‑salary costs is mandatory Social Security contributions, up 4.5%.

Hourly rates followed the trend, with the cost per effective hour at €24.88 (+5.4%) and per paid hour at €21.62 (+4.8%). Vacancies totaled 159,785, an increase of 6,900 over the same period a year earlier and the highest quarterly figure since 2013. Regional differences were notable: the Basque Country, Cantabria and Madrid/Castile‑León posted the strongest salary growth, while the Canary Islands recorded a lower labor cost of €2,715.95. Sectoral analysis showed the sharpest increases in energy supply (+15.1% to €9,043.70) and education (+10.8% to €3,130.99), with water supply registering the only sectoral decline (-0.9%).