Spain's labor market faced a setback in July, losing 9,783 Social Security affiliates, marking the worst performance for this month in over two decades.

This decline is primarily attributed to seasonal job losses in the education sector, which saw a drop of 122,551 positions due to the summer break, and a significant reduction of 39,000 jobs in agriculture.

Despite this, the unemployment rate fell by 10,830 individuals, bringing the total number of unemployed to 2,550,237, the lowest figure since 2008. The overall employment situation remains positive, with a year-on-year increase of nearly 500,000 jobs, and a notable rise in permanent contracts.

However, the data raises concerns about the sustainability of job growth as the economy faces challenges from rising interest rates and a potential slowdown in consumer spending.