Publications

In 1985, Spain joined what was then the European Economic Community. Four decades down the line, the balance is very positive in terms of growth, employment, and well-being, although it also reveals certain outstanding issues that Spain would do well to address.

According to the latest Quarterly Labor Market Observatory, published by BBVA Research and FEDEA, Spain's labor market continues to exhibit strong job creation, although persistent imbalances necessitate structural reforms. Employment growth must translate into greater productivity and equity.

Economic growth in Spain has been based on extensive factors (which may be temporary): incorporating more people into the labor market has been decisive. In contrast, productivity (the intensive and unlimited factor of growth) has yet to take off.

This edition of the OTMT examines labor market trends based on data available through Q1 2025. It reviews the main aggregate indicators and analyzes recent labor market flows, with a focus on closing gender gaps.

Spain has staged one of the most dynamic macroeconomic recoveries in Europe after the pandemic. Employment and GDP have far exceeded the levels observed in 2019. However, the mood of households does not seem to have followed the same path.

The observatory analyzes the cyclical behavior of GDP and exports in Spain up to the first quarter of 2025, highlighting a negative gap in GDP per working age population (WAP) compared to its trend level (-0.9 pp), although its growth slightly exceeds the historical trend.

The slowdown in formal employment in Mexico deepened in April, driven primarily by declining investment and growing business distrust. The contraction in key economic sectors and economic uncertainty point to weak job creation throughout the year.

In 2024, The GPD of the Canary Islands could have grown by 3.7%, and is expected to increase by 3.4% in 2025 and 1.7% in 2026. This strength is due to the robust performance of the services sector, particularly in tourism, as well as the domestic demand, where consumer spending has been increasing its weight.