• The business associations CEOE and Cepyme have warned of the “fragility” of the labor market at the start of 2026, while demanding more legal certainty to consolidate a modern labor market

• Specifically, after learning about January’s unemployment and affiliation data, CEOE stated in a release this Tuesday that these figures are the result of post-Christmas seasonality, but also of “an uncertain context that continues to condition business decisions”

“Despite the notable strength shown by the labor market in recent years, signs of fragility are observed, especially in smaller companies,” it noted, adding that global economic challenges are compounded by rising labor and tax costs, as well as “legal uncertainty due to frequent regulatory changes.”

PERMANENT INTERFERENCE OF Labor IN COLLECTIVE BARGAINING

Furthermore, the employers’ association denounced “the continuous regulatory announcements and the permanent interference of the Ministry of Labor in collective bargaining,” a tool for adaptability that is absolutely necessary for companies and workers in the face of the changes being experienced in recent years.

“To consolidate a modern, competitive labor market capable of generating quality employment, it is essential to move toward greater legal certainty and regulatory stability, smaller increases in business costs, and internal flexibility through collective bargaining, which would boost new investments, reinforce the competitiveness of the productive fabric, and guarantee the maintenance of employment,” it added.

In this context, the association led by Antonio Garamendi stressed that smaller companies continue to be the most affected by the increase in labor, energy, tax, and financial costs, as well as an unstable regulatory framework.

“The consequence is a progressive thinning of workforces in micro-enterprises, whose share of total employment fell from 21.6% in 2019 to 18.65% in December 2025,” it commented, emphasizing that Spain continues to lead the OECD unemployment rates and maintains more than half a million people in situations of limited availability or with specific employment demands, reflecting structural phenomena that remain unresolved.

WORST REGISTRATION SINCE 2012

For its part, the employers’ association Cepyme expressed its concern over the “deceleration compared to the pre-pandemic period in job creation,” while demanding a framework adapted to the reality of small and medium-sized enterprises (SMEs) and especially micro-enterprises. Specifically, the organization stated that this past month closed with a “significant destruction” of jobs.

“Although January data usually reflects the end of the Christmas campaign, the job loss on this occasion points to the worst record since 2012, with a drop in employment of 1.24% in monthly terms,” it detailed, noting that, according to seasonally adjusted data, average affiliation in January marked its third consecutive month of deceleration, worsening any monthly figure from 2024 and 2025.

In this line, the confederation warned of the difficulties SMEs face in maintaining activity and creating jobs, within a context marked by “uncertainty, rising costs, especially labor costs, and increasing bureaucratic burdens.”

COMPLEX SCENARIO FOR ENTREPRENEURSHIP

“The worse performance of employment data among the self-employed stands out, which is consistent with a complex scenario for entrepreneurship and smaller business projects, despite the progress of economic activity,” it stated, reporting that this reality aligns with data from the primary sector, “one of the most affected by the proliferation of obstacles and burdens in its activity.”

In this regard, the association commented that the situation of companies remains “very worrying” at the start of the year, since to the aforementioned difficulties are added the “high level of absenteeism and problems finding workers in some activities.”

“Furthermore, the announcement of measures that entail new cost increases and interference in company management does not contribute to improving the environment in which business activity takes place, nor does it encourage investment and business development, which translates into lower job creation and the disappearance of SMEs,” it stressed.

Thus, the entity led by Ángela de Miguel claimed the need to adopt measures “thinking about companies and the reality of Spain’s business fabric,” made up of 99.8% SMEs, of which 94% are micro-enterprises, “with limited capacity and resources to face the growing regulatory burden and the relentless increase in costs.”

Source: EuropaPress