Spain closed the summer with 22.85 million people in work, the highest figure in its history, according to the Instituto Nacional de Estadística's Labour Force Survey (EPA) for the third quarter of 2026. For anyone buying, renting or investing on the Costa del Sol, this matters more than it might seem: sustained employment growth is the foundation housing demand is built on.
The key numbers from the summer labour survey
The picture for the third quarter is both a record and a contrast. The active population hit an all-time high of 25.44 million people and employment rose to 22.85 million. But unemployment also grew, by 95,900 people compared with the previous quarter, the sharpest summer rise since 2020, taking the jobless total to 2.59 million and the rate to 10.18%. Spain's Ministry of Economy notes that this rate is still the lowest for a third quarter since 2007.
| Indicator | Q3 2026 | Quarterly change |
|---|---|---|
| Employed | 22.85 million | +73,600 (+0.3%) |
| Unemployed | 2.59 million | +95,900 (+3.8%) |
| Unemployment rate | 10.18% | +0.3 points |
| Active population | 25.44 million | +169,500 |
What is driving employment: foreign workers and the public sector
The breakdown explains the headline. The entire net rise in employment this quarter came from foreign workers, up 75,400 (+2%) following the extraordinary regularisation process, while employment among Spanish nationals slipped slightly. At the same time, public-sector jobs rose by 89,900 (+2.47%), another record, offsetting a drop in private employment. Both trends, in different ways, underpin rental and buying demand in areas with a large share of foreign-born workers, such as the Costa del Sol.
By sector, unemployment rose across the board, but more sharply in agriculture (+16.6%) and industry (+11.3%) than in services (+5.7%), the sector that weighs most in a tourism-driven economy like Málaga's.
What this means for housing in Málaga and the Costa del Sol
A national figure doesn't translate automatically into local prices, but it does set the context. More people in work, a growing active population and a steady flow of foreign workers are, historically, the ingredients of sustained housing demand: people who need to rent when they arrive and, over time, buy. The Costa del Sol, with an economy built on tourism and services, tends to absorb spikes in unemployment better than other parts of Spain, precisely because its housing and job demand doesn't depend on a single sector.
According to EVS PROPERTY GROUP's own data for October 2026, the median price on the Costa del Sol stands at €650,000 (€4,738/m²), with Marbella leading the way (€6,096/m²) and Torremolinos and Mijas among the more affordable options along the coast.
| Municipality | Median price | €/m² (median) |
|---|---|---|
| Marbella | €950,000 | €6,096 |
| Fuengirola | €560,000 | €5,417 |
| Málaga city | €625,000 | €4,955 |
| Estepona | €637,000 | €4,750 |
| Benalmádena | €642,500 | €4,536 |
| Mijas | €550,000 | €4,367 |
| Torremolinos | €517,500 | €4,349 |
| Costa del Sol (overall) | €650,000 | €4,738 |
You can check these figures, updated every month, in our Costa del Sol market report.
What to watch heading into 2027
The data itself has nuances worth tracking: private employment fell, and growth leaned on the public sector and on the regularisation of foreign workers, two drivers that won't run forever. Anyone buying or investing on the Costa del Sol who wants an accurate read of the market should also watch sales and mortgage figures, which have also risen in recent months, rather than just the headline employment number.
Conclusion
Spain has never had this many people in work, even though unemployment rose more than usual this summer. For the Costa del Sol, a region that lives off tourism and attracts workers and buyers from abroad, the underlying trend, more people working and an active population at record levels, remains good news for housing demand. If you're weighing up buying, selling or investing in the area, EVS Property can help you read this data alongside the local market.
Frequently asked questions
Why does unemployment rise if employment is at a record?
Because the active population also grew to a record high: more people joined the labour market looking for work than actually found it that quarter, which pushed unemployment up even as employment also rose.
How does foreign employment affect housing on the Costa del Sol?
Foreign workers typically start out renting and, once settled, many move on to buying; in an area with a large foreign resident and worker population like the Costa del Sol, that flow supports both the rental and sales markets.
What do homes cost on the Costa del Sol right now?
According to EVS PROPERTY GROUP data for October 2026, the median price across the Costa del Sol is €650,000 (€4,738/m²), with Marbella the most expensive municipality and Torremolinos among the most affordable.
Where does this employment data come from?
From the Labour Force Survey (EPA) published by Spain's National Statistics Institute (INE), covering the third quarter of 2026, released on 27 October 2026.
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
