Registered unemployment in Spain rose by 19,517 people in July 2026, to a total of 2,311,499 jobless, but Andalusia was the big exception: it cut 9,661 unemployed, down 1.8%, the largest fall of any region. For anyone buying or investing on the Costa del Sol, that contrast says more than the national headline, because local employment is what underpins housing demand, access to mortgage credit and rental occupancy.
What do the July 2026 unemployment figures actually say?
A rise in unemployment in July is not bad news in itself: it is the normal pattern for the month, when the school year ends and contracts tied to education and certain industries expire. What matters is the comparison. Despite the monthly increase, the figure is the lowest for any July since 2007 and, over twelve months, unemployment has fallen by 93,107 people.
- Total unemployment: 2,311,499 people, the lowest figure for a July since 2007.
- Monthly change: 19,517 more unemployed, a rise of 0.85%.
- Annual change: 93,107 fewer unemployed, a fall of 3.87%.
- Under-25s: 159,562 unemployed, an all-time low for the series.
- Contracts signed in the month: 1,587,141, of which 617,211 were permanent, 38.89% of the total.
Why is unemployment falling in Andalusia and rising in Catalonia, Valencia and Madrid?
The calendar explains much of the map. In regions where education and industry carry more weight, July is the month when contracts end. On the Andalusian coast the opposite happens: it is the month when the high season is running at full capacity and hospitality, retail and tourism services absorb labour. Malaga and its coastal strip account for a very significant share of that employment.
| Region | Change in July | Change % |
|---|---|---|
| Andalusia | -9,661 | -1.80% |
| Extremadura | -767 | -1.27% |
| Cantabria | -250 | -0.94% |
| Madrid | 3,822 | 1.42% |
| Valencian Community | 7,021 | 2.49% |
| Catalonia | 7,705 | 2.51% |
| Spain (total) | 19,517 | 0.85% |
One caveat is worth adding: much of the employment created by the Andalusian summer is seasonal and will unwind in the autumn. But the year-on-year drop of 93,107 unemployed across Spain is not explained by seasonality, and neither is youth unemployment hitting an all-time low.
How does employment affect house prices on the Costa del Sol?
The Costa del Sol market runs on two engines that do not respond to the same stimuli. International buyers, who largely purchase without a Spanish mortgage, set prices in Marbella, Benahavís or Estepona and depend more on exchange rates and their home economy than on Spanish unemployment. Domestic and local buyers, by contrast, do depend on jobs and financing, and they are the ones sustaining transaction volume in Mijas, Fuengirola, Benalmádena, Torremolinos and the city of Málaga itself.
| Municipality | Median price | Price per m2 | Active listings |
|---|---|---|---|
| Marbella | €950,000 | €5,847/m2 | 2,209 |
| Estepona | €649,000 | €4,625/m2 | 1,438 |
| Fuengirola | €578,000 | €5,391/m2 | 701 |
| Benalmádena | €599,000 | €4,437/m2 | 409 |
| Mijas | €539,999 | €4,163/m2 | 1,237 |
| Torremolinos | €495,000 | €4,412/m2 | 159 |
| Costa del Sol (overall) | €650,000 | €4,625/m2 | 8,796 |
Figures from our Costa del Sol market report, updated in August 2026 across 8,796 listed properties. The reading is straightforward: a resilient Andalusian labour market mainly protects the mid-price band, from €400,000 to €700,000, while the top segment remains driven by foreign demand.
Permanent contracts and mortgages: the number the bank really looks at
Of the 1,587,141 contracts registered in July, 617,211 were permanent, up 1.19% on a year earlier, while temporary contracts fell 0.93%. That shift in composition matters more to the property market than the unemployment headline, because contractual stability is precisely what a Spanish bank assesses before granting a mortgage.
For a resident buyer, completing the probation period on a permanent contract is often the difference between financing 80% of the appraised value and being turned down. For a non-resident buyer the rules are different: typical financing runs between 60% and 70%, and what you evidence is income and assets in your home country, not Spanish labour statistics.
Construction saw the biggest rise: a bad sign for new-build?
In July, construction added 2,433 unemployed, up 1.53%, and was the fastest-growing sector in relative terms, ahead of services, industry and agriculture. It should be read in proportion: this is a small change on a small base and at national level, and it does not describe what is happening in a specific market such as the province of Málaga.
If you are buying off-plan, the relevant data point is not the monthly statistic but what your contract says: the committed delivery date, the bank guarantee covering your stage payments, and the developer's warranties. That is what protects you if a project is delayed, regardless of how sector employment evolves.
What all this means for a buyer or an investor
July's message for the Costa del Sol is one of stability, not euphoria or alarm. Andalusia posted the country's best performance in a traditionally weak month, year-on-year unemployment is falling and stable employment is gaining ground. In a market where the median price is around €650,000 and active supply exceeds 8,700 properties, that context favours calm decisions: compare areas, negotiate with data and do not buy in a hurry.
If you are considering buying, selling or investing on the Costa del Sol, at EVS PROPERTY GROUP we work with up-to-date median price and price-per-square-metre data for every municipality. Tell us about your situation and we will show you, with figures, which area fits your budget and your return objective.
Frequently asked questions
How many unemployed are there in Spain in July 2026?
In July 2026 there were 2,311,499 people registered as unemployed in Spain, after a rise of 19,517 from June. It is the lowest figure for a July since 2007 and represents 93,107 fewer unemployed than a year earlier.
How much did unemployment fall in Andalusia in July 2026?
Andalusia recorded 9,661 fewer unemployed, a fall of 1.8%, the largest of any region that month. The boost comes largely from the peak tourist season along the coast, with Málaga and the Costa del Sol as the main hubs.
Does unemployment affect house prices on the Costa del Sol?
It affects prices unevenly. In the upper segments of Marbella or Benahavís, prices are set by international demand, which is barely sensitive to Spanish employment. In the mid-range of Mijas, Fuengirola or Torremolinos, where residents buy with a mortgage, jobs and credit do influence transaction volume and negotiating power.
Do I need a permanent contract to get a mortgage in Spain?
It is not a legal requirement, but in practice Spanish banks offer better terms to applicants who can evidence job stability, and a permanent contract past probation is the most common way to prove it. Non-resident buyers are assessed differently: income and assets in their home country, with typical financing of 60% to 70%.
Is 2026 a good time to buy on the Costa del Sol?
The labour backdrop is favourable and supply is broad, with around 8,800 active listings and a median price of roughly €650,000. The answer depends more on the area and your specific objective than on the cycle: the same budget buys very different realities in Marbella, Estepona or Mijas, so it pays to compare before deciding.
What next? The most useful thing after reading is to look at the real market: browse properties by city or tell us on WhatsApp what you are looking for — area, budget, timing — and we will prepare a tailored selection, with no obligation.
You may also find useful: sell your property invest on the Costa del Sol free valuation monthly price report
