Spain’s labour market has experienced various changes, including a steady increase in migration, helping to offset the country’s negative population growth. Among EU nationals, Romanians, Italians, and Germans make up the largest groups. Non-EU nationals primarily come from Morocco, Colombia, and the UK. Over the past year, the most significant increases in foreign nationals have come from Colombia, Italy, and Venezuela.
Economic Growth in Spain
Spain has the fourth-largest economy in the European Union and ranks 14th in the world based on nominal gross domestic product (GDP). The country’s economic expansion is driven by strong domestic demand and a robust external sector. In 2022, Spain experienced a GDP growth rate of 4.4%, and it is expected to grow by 2.1% in 2023. Despite slower growth across Europe, Spain’s economy remains resilient, with growth above the euro area average.
This economic performance is supported by improvements in the labour market, growth in exports, and investments linked to the national Recovery Plan. The unemployment rate is projected to continue declining, with expectations that it will drop to 12.8% by 2023.
The Labour Market Reform and Employment Trends
Spain’s recent labour market reforms have led to positive outcomes, such as the creation of over one million permanent jobs in 2022. This significant increase in stable employment is five times greater than the pre-reform numbers. The country has also made progress in reducing temporary contracts, aligning more closely with European averages. Youth unemployment hit a historic low in September 2022, further indicating the effectiveness of these changes.
However, challenges remain, particularly with Spain’s ageing population and high levels of unemployment among young people and individuals over 55. Long-term unemployment also continues to be a concern, with many jobseekers struggling to re-enter the workforce.
Business and Employment Structure
Spain’s business landscape is dominated by small enterprises. According to the Central Directory of Companies, there were 3.43 million active businesses in 2021. Notably, 80% of these businesses had two or fewer employees. These small businesses are primarily concentrated in the services sector, especially retail. In contrast, large companies are typically involved in industrial sectors like infrastructure, renewable energy, tourism, banking, textiles, and more.
Employment figures have improved across most sectors, with notable increases in construction and services. Food and beverage services, IT, healthcare, education, and public administration have been the main drivers of job growth. However, some sectors, particularly agriculture, saw a decline in employment.
Job Vacancies and Labour Shortages
While Spain’s economic recovery is underway, certain sectors face labour shortages, especially in technology and renewable energy. In the fourth quarter of 2022, companies reported 140,517 job vacancies, most of which were in the services sector. Despite these numbers, Spain still has one of the lowest job vacancy rates in Europe.
The most difficult positions to fill are in information and communication technologies (ICT), STEM professions, healthcare, hospitality, construction, and renewable energy. Spain also struggles to find enough workers for lower-skilled roles in these industries.
EURES (EURopean Employment Services) Job Opportunities by Region
EUROS have a dedicated job portal listing over 3 Million Job vancancies in the EU, they also have a useful section that details jobs that are in shortage and also jobs in oversupply (broken down by region). you can access it here
Demand for Specific Job Roles
Some of the most in-demand roles in Spain are in technology, such as data analysts, IT security specialists, and renewable energy engineers. Health-related roles, including nurses and healthcare assistants, are also in high demand. In the hospitality sector, waiters, cooks, and other service roles remain hard to fill. The transport and construction sectors report shortages in positions such as truck drivers, bricklayers, and carpenters.
However, Spain’s biggest labour market challenge is the shortage of medium-skilled workers, especially those with vocational training in sectors like transport, vehicle maintenance, and healthcare.
Reskilling and Future Labour Market Needs
The COVID-19 pandemic has left a lasting impact on Spain’s labour market, altering job profiles and increasing the demand for new skills. Many workers, especially those in low-skilled jobs, will need to reskill to adapt to the changing economic landscape. Despite improvements in employment, the number of jobseekers remains high, particularly in low-skilled roles such as office cleaners, shop assistants, and clerical workers.
Who Can Work in Spain and Who Can’t
Spain’s labour market is influenced by European Union (EU) regulations, which give clear preferences to EU nationals when it comes to employment opportunities. Understanding who can legally work in Spain is essential, as different rules apply depending on a worker’s nationality.
EU, EEA, and Swiss Nationals
Nationals from EU countries, the European Economic Area (EEA), and Switzerland enjoy the right to live and work in Spain without needing a visa or work permit. This includes citizens from all EU member states, Norway, Iceland, Liechtenstein, and Switzerland. Thanks to the EU’s principle of free movement, workers from these countries can take up employment in Spain under the same conditions as Spanish citizens.
This free movement of workers gives EU nationals a significant advantage in Spain’s job market. They are free to apply for jobs, sign employment contracts, and access the country’s public services without any special legal requirements. Employers in Spain are not obligated to prioritize Spanish nationals over EU workers, meaning they can freely hire based on skills and qualifications rather than nationality.
Non-EU Nationals
For those coming from outside the EU, the process of working in Spain is more complex and requires obtaining a valid work visa. Non-EU nationals need both a job offer and the appropriate visa to be able to work legally in Spain. There are several types of work visas available depending on the nature of the job:
- Work and Residence Visa: For long-term employment, applicants need a confirmed job offer from a Spanish employer. The employer must first check if an EU national can fill the position before offering it to a non-EU national, a process known as the “labour market test.” If no EU candidate is suitable, the non-EU worker can be hired.
- Seasonal Work Visa: For those wishing to work in agriculture, tourism, or other industries with seasonal employment needs, the seasonal work visa allows non-EU nationals to work in Spain temporarily. It requires a contract with a Spanish employer and includes restrictions on the length of stay.
- Highly Skilled Work Visa: Non-EU nationals with specialized skills or in-demand qualifications can apply for this visa, typically for professions in sectors like technology, engineering, and health care. The application process is streamlined for highly skilled workers.
- EU Blue Card: This visa is aimed at non-EU nationals who have higher education qualifications and wish to work in highly skilled jobs. Applicants must have a valid job offer from a Spanish company that meets the salary threshold for the Blue Card program.
- Entrepreneur Visa: Non-EU nationals who want to start a business or invest in Spain can apply for this visa. The business plan must demonstrate potential for job creation or economic growth in Spain.
Visa Process for Non-EU Workers
To apply for a work visa, non-EU nationals must first secure a job offer from a Spanish employer. The employer then submits a work permit application to the Spanish authorities. Once approved, the worker can apply for a visa at the Spanish consulate in their home country. The process usually involves providing documentation such as:
- A valid passport
- Employment contract or job offer
- Proof of qualifications and professional skills
- Background checks or police clearance
- Health insurance
After receiving a visa, the worker is allowed to enter Spain and must apply for a residence permit within 30 days of arrival. The residence permit allows them to live and work legally in Spain for the duration of their employment.
Preference for EU Workers
Spanish immigration laws are designed to prioritize EU workers over non-EU nationals. When a job vacancy opens, the employer must first ensure that no suitable candidates from the EU or EEA are available before considering non-EU applicants. This policy is in place to support the free movement of workers within the EU and to ensure that EU nationals have first access to jobs in Spain.
Non-EU nationals can only be hired if no EU worker meets the job requirements or if the position is in an industry experiencing significant labour shortages, such as healthcare, IT, or engineering. Certain highly skilled professions and managerial roles may be exempt from this requirement, allowing non-EU nationals to bypass the labour market test.
Review of EURES (European Employment Services)
The European Employment Services (EURES) platform is a valuable resource for anyone seeking employment opportunities across Europe, including Spain. EURES helps job seekers connect with employers, providing tools to match skills with job vacancies across the EU. With user-friendly features, it enables workers to find jobs that align with their experience, and employers can source qualified candidates from a wide talent pool.
One of the standout features of EURES is its focus on cross-border employment, allowing workers to seamlessly apply for positions in different EU countries. The platform also offers information about working conditions, employment rights, and social security benefits, making it an essential tool for navigating the European labour market.
Whether you’re looking for your next career opportunity in Spain or across Europe, EURES is a helpful resource to consider.
