Spain’s long-standing record as the European Union country with the highest unemployment rate has finally been eclipsed. In November 2025, Finland’s seasonally adjusted unemployment rate rose to 10.6%, surpassing Spain’s 10.4%, according to data released Thursday by Eurostat. Spain had held the top spot for 39 consecutive months, a streak reflecting persistent labor market challenges, even as recent improvements had gradually narrowed the gap with the EU average of 6%.
The surge in Finland’s unemployment stems from a combination of slow economic growth, years of austerity, and the impact of its closed border with Russia, which has disrupted trade and employment opportunities. Just three years ago, Finland’s unemployment rate hovered slightly above 6%, well below the EU average, highlighting the rapid deterioration in the country’s labor market.
Despite losing the top spot under the seasonally adjusted metric, Spain continues to record the highest unemployment when measured by other methods. Without seasonal adjustment, Spain’s rate stands at 10.2%, compared to Finland’s 9.7%. Similarly, in trend-based figures, Spain reports 10.4% versus Finland’s 10.1%. Eurostat acknowledges that different statistical approaches are used across countries to capture labor market realities more accurately.
Spain’s labor market challenges have deep historical roots. Analysts note that the country’s employment system, characterized by high temporary contracts, structural dualities, and vulnerability to economic cycles, has consistently produced higher unemployment than the EU average. Experts such as Lucía Vicent of the Complutense University of Madrid and Marta González of the University of Oviedo emphasize that Spain’s Mediterranean model contrasts sharply with the more industrialized and policy-intensive labor systems of central and northern Europe, which combine stronger protections with active employment programs and industrial stability.
For nearly half a decade, Spain remained the EU’s most unemployment-stricken nation, a distinction it had intermittently held since the early 2000s, including during the aftermath of the global financial crisis. Previously, countries such as Greece, Latvia, and other southern European economies had led the EU unemployment rankings. The shift to Finland signals a notable change in the northern European economic landscape but does not erase Spain’s persistent structural labor challenges.
The latest figures underscore the continuing divergence within the EU labor market. While countries like Malta and Poland maintain unemployment rates near 3%, the Nordic and Mediterranean extremes reveal how economic structure, labor policy, and cyclical shocks interact to shape employment outcomes across the bloc. For Spain, now surpassed by Finland, the challenge remains to strengthen labor stability, expand high-value sectors, and reduce reliance on temporary and cyclical employment.