Spain | Employment, immigration and productivity

Summary

Spain’s labour market remains dynamic, supported by the foreign population, which helps offset demographic ageing. Immigration is key to sustaining employment, though integration faces temporary employment and productivity challenges. The regularisation process is expected to have a limited macroeconomic impact.

Key points

• Key points:
• The labour force exceeded 25.1 million in the first quarter of 2026. Since the end of 2019, foreign employment has increased by 53%, accounting for almost two-thirds of net job creation since the pandemic.
• Hours worked fell by 0.3% at the start of the year, following a 2.6% decline in average working hours since 2019. However, GDP per employed person rose by 0.3%, supported by a 1% increase in hourly productivity.
• GDP per hour worked among the foreign population is 19% lower than among Spanish workers, although it has grown by 7.2% since 2019, outpacing the 3.3% increase recorded by national workers.
• Foreign-born workers remain overrepresented in temporary and permanent-discontinuous contracts, and are more likely to work atypical hours, particularly at weekends.

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