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Spain Labour Reforms and Unemployment

Latest development

Spanish courts start applying the EU ruling on abusive public-sector temporary contracts

Key takeaways

  • Spain's labour-reform debate has moved from cutting temporary contracts to proving that lower temporariness also delivers durable employment when growth weakens.
  • The Q1 2026 rebound in unemployment tests whether the post-2021 jobs recovery is resilient or still heavily exposed to seasonal weakness.
  • The EU-court dispute over public-sector temporary workers adds separate legal and budget pressure beyond the private-sector reform story.

Timeline