Publications

Immigration has played a significant role in the recent improvement of GDP per capita in Spain, driven by increases in both employment and productivity. The key question moving forward is whether the Spanish economy will be able to better leverage the human capital it is taking in.

Mexican SMEs are key drivers of employment and economic growth, but they face barriers that limit their expansion. Low investment and shortcomings in areas such as workforce training and technology adoption, among others, reduce their productivity and hinder their ability to achieve greater scale.

In this edition of the QLMO, we assess recent labour market developments using the information available through Q1 2026. We review the main aggregate indicators and explore a number of issues related to working conditions, immigration, and youth emancipation.

Spain is experiencing record employment growth that contrasts with the stagnation of wage purchasing power. This situation is explained by an economic model based on the accumulation of jobs rather than improvements in productivity, compounded by a higher tax burden on labor.

Spain is experiencing a dynamic period of strong job creation that invites optimism, but it also raises a question for debate: where does the labor force needed to sustain this growth come from without overheating the labor market?

This issue of the OTMT reviews labour market developments using data available through the fourth quarter of 2025. We assess trends in the main aggregate indicators and estimate the scale and characteristics of irregular employment in Spain.

Spain grew by 2.8% in 2025, driven by employment and domestic demand. Growth has been more extensive than intensive, with productivity remaining stagnant. Immigration has boosted employment and GDP per capita. The challenge is to raise both employment and productivity by increasing investment and improving its efficiency.