This article aims to analyze the phenomenon of financial conservatism in firms' capital structures and relate it to their employment variation for a sample of Spanish companies during the 2007 - 2010 period. Financial conservatism consists of a low-leverage/high cash no-short-term capital structure policy. We use Jovanovic's model (1982) that relates growth, age and size, as used by Heshmati (2001), to which we add a dummy indicating financial conservatism. As the growth of a company is measured as its number of employees variation, what we are ultimately analyzing is how financial conservatism affects job creation. Evidence shows that a financial conservative policy is positive for job creation.