The latest economic data from early March 2026 paints a complex picture of the European economy. While the eurozone unemployment rate unexpectedly fell, Spain is grappling with record housing costs, which have risen by 13% since 2019. Meanwhile, the US services sector posted its best performance since July 2022, contrasting with signs of slowdown in Spain's private sector and tourism.
Unexpected drop in unemployment
The unemployment rate in the eurozone fell below analysts' expectations, showing strong resilience in the European labor market.
Cost of living crisis
In Spain, housing-related costs have risen by 13% since 2019, hitting the poorest social groups.
Strong US services sector
The ISM Services PMI in the United States reached 56.1 points, its best reading since July 2022.
Pay inequality in Madrid
Trade unions warn that women in the capital region of Spain earn on average nearly 6,000 euros less per year than men.
Analysis of the latest macroeconomic indicators reveals a significant divergence in the economic situations of Europe and North America. The eurozone recorded a surprising drop in the unemployment rate, suggesting strong labor market resilience despite earlier fears of stagnation. However, Italy's services sector shows signs of slowing, while activity in Germany's services sector accelerated, as confirmed by February data. A particularly difficult situation prevails in Spain, where the labor market has indeed reached a record employment level, but this is accompanied by precarization. More and more workers are forced to take on two jobs to cover living costs. Trade union data indicates a persistent gender pay gap, which in the Madrid region averages 5,802 euros per year. Additionally, the tourism sector, a driving force of the Spanish economy, is showing the first signs of fatigue – visitor growth in January was only 1.2%, linked to a decline in arrivals from Germany and France. Since the eurozone debt crisis in 2012, Southern European countries, including Spain and Italy, have intensified structural reforms aimed at making labor markets more flexible and reducing public deficits.The situation in Spain's real estate market is becoming critical. Housing expenses have increased by 13% over the last five years, meaning one in five families living in poverty is in a situation of extreme vulnerability. The average monthly household cost of living has risen by 80 euros, and tenant debts to landlords have jumped by 16%, reaching an average of 8,500 euros per debtor. Meanwhile, optimistic signals are coming from across the ocean: the US ISM Services PMI rose to 56.1 points, reaching its highest level in nearly four years, indicating stable domestic demand in the world's largest economy. The ISM Index is a key gauge of sentiment in the US corporate sector; readings above 50 points signal sector expansion, which is interpreted by financial markets as a signal for interest rate hikes.