Spain's economy needs over 2 million workers to sustain pensions and jobs

Friday 14 November 2025 - 16:20

By: Dakir Madiha

Spain's economy needs over 2 million workers to sustain pensions and jobs

Spain faces a pressing demographic challenge as a new report reveals that the country will require 2.4 million additional workers over the next decade to maintain economic productivity and stabilize its pensions system. With a rapidly aging native population, experts emphasize that migrants will play a crucial role in filling these positions.

The study, titled "Migratory Reality in Spain," was prepared by the Economic and Social Council (CES) and presented by its president, Antón Costas, to Elma Saiz, Spain's Minister of Inclusion, Social Security, and Migration. The report underscores the vital role of immigration in sustaining Spain’s economy, particularly as the baby boomer generation approaches retirement.

Migration has already become a cornerstone of Spain's labor market. Since 2019, three out of every four new jobs have been taken by migrants, and foreigners now account for nearly 20 percent of the country’s population. By 2072, forecasts from Spain's national statistics agency (INE) predict that over one-third of residents will be foreign-born, a dramatic shift from the current 15.5 percent.

Despite its economic necessity, immigration remains a contentious political issue. Far-right Vox has amplified anti-immigrant rhetoric, pulling support from the centre-right People's Party and shifting the political conversation further to the right. However, Prime Minister Pedro Sánchez continues to advocate for immigration, linking it to Spain’s robust post-pandemic economic growth.

The report also highlights the increasing regional reliance on migrant workers, particularly in provinces like Castile y León, Asturias, and Galicia, where native populations are declining due to emigration. Foreign employment in these areas now makes up significant portions of the workforce, with foreign workers accounting for 10.4 percent of employment in Castile y León, 7.4 percent in Asturias, and 7.1 percent in Galicia.

Highly skilled migrants are also contributing to Spain’s economy, with jobs in information technology, communications, and scientific fields experiencing notable growth. Foreign self-employment has reached record levels, with over 494,000 migrant entrepreneurs registered in Spain.

The report praises Spain’s migration policies, citing reforms in 2022 and 2024 as key to fostering shared prosperity. Minister Saiz called Spain's approach a "model of balance, efficiency, and humanity," recognized beyond its borders. Costas added that while the pace of immigration has slowed since its peak in 2024, its positive impacts on the economy and demographics remain evident.

As debates over immigration continue to polarize Spain, the report serves as a reminder of the indispensable role migrants play in addressing the country’s demographic and economic challenges.