A report from the Centre for Studies on Work and Development (CETyD) reveals that 90% of new employees in Spain do not earn enough to live, while informal employment rises to 44.2%.
The Spanish labour market is facing a paradox: more people are working, but most are doing so under precarious conditions. This is reflected in the latest Sociolaboral Monitor from the Centre for Studies on Work and Development (CETyD), which warns that 90% of new employees do not generate enough income to cover their basic needs.
The report, which analyses data from early 2025 to the first quarter of 2026, indicates that the increase in employment is not due to economic improvement, but rather to households needing to add more income due to the loss of purchasing power. The activity rate reached 48.6%, one of the highest levels in recent years.
Informal employment: the hidden side of growth
The CETyD study focuses on the quality of employment. According to its data, the jobs that grew the most were informal, both among salaried workers and self-employed individuals. As a result, the rate of informal employment rose to 44.2%, a figure not seen in years.
For researchers, this data dismantles the narrative of recovery: formal employment is being destroyed and replaced by low-quality jobs, without social protection or labour rights. More than 90% of new employees need to work extra hours to try to make ends meet, but they face weak consumption and a lack of economic activity.
“The increase in employment does not represent a genuine recovery of the labour market, as the loss of formal jobs is being compensated by lower-quality jobs without labour protection,” warn those at CETyD.
Families at the limit: more people seeking extra income
The deterioration of purchasing power has forced many families to bring new members into the labour market. The activity rate of 48.6% reflects this pressure: retirees, young people, and those who had stopped looking for work are trying again to supplement household income.
However, the report emphasises that these new entrants do not find a market capable of absorbing them under decent conditions. 44.2% of employees work in the informal economy, without contracts or contributions, which exacerbates precariousness and inequality.
For readers interested in the labour market, the study offers a worrying snapshot: employment is growing in quantity, but not in quality. Nine out of ten new jobs do not guarantee a sufficient salary, forcing families to seek multiple sources of income or to incur debt. Experts recommend closely monitoring employment policies and labour reforms, as well as diversifying income sources to avoid dependence on a single precarious job.
The CETyD report concludes with a warning: if the trend is not reversed, the structural precariousness of employment could have lasting effects on social cohesion and the well-being of Spanish households. The coming quarters will be crucial to see if the measures announced by the Government can curb the advance of informality or if, on the contrary, the gap between employment and job quality continues to widen.
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