The province of Castellón has reduced unemployment by 25% since 2018 and has increased employment by 25%, reaching 291,400 workers, according to the EPA. However, only 52.7% of new contracts are permanent, indicating that seasonality continues to shape the labour market.
The labour market in Castellón has experienced substantial improvement over the past eight years, coinciding with Pedro Sánchez's term as President of the Government. According to data from the Active Population Survey (EPA) for the second quarters, employment has grown by 25% and unemployment has decreased by the same proportion, although the quality of employment remains a pending issue. The information, reported by castellonaldia.elmundo.es, reflects that the province has moved past the critical situation it faced after the 2008 crisis.
In absolute figures, Castellón recorded 232,500 employed in the second quarter of 2018, compared to 291,400 in the same period of 2026, representing a 25% increase. The employment rate has risen from 49.1% to 53.1% over six years, although it has fallen by one point compared to the second quarter of 2025. The only setback in the series occurred in 2023, when 10,500 jobs were lost due to the cost and demand crisis that affected the ceramics industry and other sectors.
Unemployment has also followed a downward trend. Unemployment has decreased by 25% since June 2018, falling from 43,200 to 32,400 people in the second quarter of 2026. The minimum was reached in 2022, with 30,400 unemployed, but the pandemic and inflation caused by the Russian invasion of Ukraine temporarily raised the figure. Despite the improvement, the unemployment rate has not yet recovered to pre-financial crisis levels.
One of the most questioned aspects is the quality of the jobs created. The labour reform of 2022, driven by the Ministry of Labour led by Yolanda Díaz, has managed to increase permanent contracts, but their proportion remains limited. In the first half of 2018, only 13.7% of the 110,767 new contracts were permanent. In the same period of 2026, of the 78,841 contracts signed, 52.7% were permanent. Although the progress is notable, temporality still affects nearly half of new hires, especially in the services sector.
"The labour reform has significantly increased permanent contracts, but the share of permanent contracts does not exceed 55%,” business representatives state.
Business organisations have criticised some of the Government's employment policies, although they acknowledge that economic recovery has contributed to the improvement. Factors such as the global situation, geopolitics, and the productive structure of the province also explain the evolution. Looking to the future, the early elections on 29 November add uncertainty regarding the labour policies that will be implemented in the coming years.
For workers and businesses in Castellón, the challenge remains to consolidate a labour market that combines growth with stability. The next EPA, to be published at the end of October, will provide new data on employment trends as the year comes to a close.
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