Unemployment Rates Surge Amid Job Losses in Private Sector

Between January and March, unemployment rose by 231,500 individuals, marking a staggering 93% increase compared to the previous quarter, according to the National Institute of Statistics (INE). Employment simultaneously decreased by 170,300 people, with significant job losses concentrated in the private sector, leading to the destruction of 191,400 jobs. This rise in unemployment for the first three months of the year is the steepest since 2013, when 257,200 jobs were lost during the same period. The decline in employment this quarter is also notable, being the most significant since 2020 during the pandemic peak, which saw a loss of 285,600 jobs. As of the end of March, the total number of unemployed individuals reached 2,708,600— the highest figure recorded since the first quarter of 2025. In contrast, the count of employed workers fell to 22,293,000, down from a record 22.46 million at the end of the previous year. Despite these alarming figures, the Ministry of Economy, Trade and Business emphasized the positive aspect of seasonally adjusted employment data which showed, for the first time, that the number of employed exceeded 22.5 million. Employment grew by 96,800 positions (0.4%) in the first quarter and increased by 532,300 in the past year. The first quarter typically experiences a seasonal decline due to the end of the holiday season, particularly affecting the hospitality and commerce sectors. The unemployment rate climbed from 9.9% to 10.83%, returning to double digits for the first time in a while. However, this current rate is still the lowest for a first quarter since 2008. The activity rate saw a slight decrease to 58.86%, although the number of active individuals rose by 61,200 between January and March, reaching a record high of 25 million. Notably, the past year showcased a decrease in unemployment by 80,600 individuals (2.9%) and a creation of 527,600 jobs (2.4%), with the total number of active individuals increasing by 447,000 (1.8%). Within the employment sector, salaried individuals dropped by 102,900 (0.5%) in the first quarter, largely due to reductions in temporary employment. Full-time employment also fell by 116,500 individuals but increased by 567,600 in the last year. On a positive note, salaried employees with indefinite contracts increased by 539,700 (3.4%) over the past year, while temporary workers rose by 17,200 (0.6%), leading to a decrease in the temporary employment rate to 14.77%, which in the private sector reduced to 11.91%. Related Sources: • Source 1 • Source 2