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Unemployment in Madrid reaches its lowest figure in July since 2008

Madrid records its lowest unemployment figure for July since 2008 with 273,631 unemployed.

Ernesto TafallaErnesto Tafalla· · 2 min read

The Community of Madrid records 273,631 unemployed, an increase of 1.42% compared to June. Despite this, it is the lowest figure for this month in nearly two decades.

The number of unemployed in the Community of Madrid has reached 273,631 after an increase of 1.42% in July compared to the previous month. This increase translates to 3,822 more unemployed than in June, according to data from the Ministry of Labour and Social Economy. However, despite the monthly rise, this figure represents the lowest level of unemployment recorded for a month of July since 2008, indicating a positive long-term trend.

Despite the monthly increase, the year-on-year data shows a significant decrease: there are 2,245 fewer people unemployed compared to July 2025, which equates to a reduction of 0.81%. This context has led regional president Isabel Díaz Ayuso to highlight that the Community continues to be a leader in job creation in Spain.

In terms of gender breakdown, women continue to represent a larger proportion among the unemployed: 163,945 are women, which implies an increase of 2,443, while men total 109,686, with an increase of 1,379. The group most affected by unemployment is those over 25 years old, who represent the majority with 256,368 unemployed, although there is also a slight increase among those under 25 years old with 17,263 young people without work. This latter group saw a monthly increase lower than previously recorded.

At the sectoral level, the highest number of unemployed is concentrated in the services sector with 222,280 people, followed by construction (16,894), industry (14,320), and agriculture (1,632). In contrast to these negative unemployment figures, the hiring figures show a notable decline: during July, only 215,405 contracts were formalised, representing a decrease of 7.75%. This decline is even more pronounced when compared to the same month of the previous year.

Despite the decrease in hiring and the slight increase in unemployment, regional authorities emphasise that Madrid has seen significant growth in Social Security affiliation over the past year: it has increased by 132,261 people, reaching a total of contributors of approximately 3,908,415. This represents a year-on-year growth of 3.5% compared to the national average of around 2.9%.

As the year progresses and new economic and labour challenges approach for Madrid and Spain as a whole, it will be crucial to observe how these trends impact both workers and employers.

Ernesto Tafalla

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Ernesto Tafalla