Spain's labor costs rise for 19 quarters as Seville logistics workers strike

The Harmonized Labor Cost Index (ICLA) released by Spain's National Statistics Institute shows a 5.3% rise in hourly labor cost in the first quarter of 2026 compared with the same period in 2025. This increase marks the 19th consecutive quarter of inter‑annual labor‑cost growth, the longest stretch since early 2020. The index also notes that, after seasonal adjustments, the hourly cost rose 4.9% year‑on‑year.

In the logistics sector, a strike began in Seville after negotiations over the collective bargaining agreement for 2026 stalled. The strike is scheduled for twelve working days. Employers have offered a 4% wage increase for 2026 and 3% for 2027, with a clause linking future raises to inflation and a €20 monthly bonus. Union representatives cite a 48% rise in fixed costs and a 2.86% decline in sector operating profit in 2025, stressing that profitability pressures limit the ability to absorb further cost increases.