06
Mar 2025
Spain’s economy is growing faster than the United States and the rest of the European Union (EU), thanks to its acceptance of foreign workers.
While other countries close their borders and push anti-immigration policies, Spain has chosen a different path—one that is boosting its economy. Foreign workers now make up a larger share of the workforce, helping drive this success.
Foreign labor driving economic growth
Spain’s economy grew by about 3% last year, well above the eurozone average of 0.8% and the U.S. growth rate of 2.8%.
Experts credit this growth to foreign workers, who have filled 45% of new jobs since 2022. Nearly 3 million foreign workers now make up 13% of Spain’s workforce.
Spain’s Minister for Social Security and Migration, Elma Saiz, reaffirmed the country’s support for an open labor market. “We had two choices,” she said. “To be a closed and struggling country or an open and thriving one.”
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Filling essential jobs in key sectors
Foreign workers play a key role in tourism, agriculture, and construction—industries that struggle to hire local employees. Many young Spaniards choose higher education and professional careers, leaving essential lower-wage jobs unfilled.
Companies like BonÀrea, a major food producer, rely on foreign workers to keep business running.
“Without workers from other countries, we simply wouldn’t be able to operate,” said Xavier Moreno, the company’s head of human resources.
To address labor shortages and reduce risky migration, the government has created temporary work programs that legally bring in workers from Africa. This effort provides a safer alternative to dangerous crossings into Spain’s Canary Islands.
Migration sustaining social security system
Spain’s aging population poses a long-term economic challenge. The Bank of Spain estimates the country will need 30 million working-age migrants over the next 30 years to keep a stable balance between workers and retirees.
Since the COVID-19 pandemic, nearly all of Spain’s population growth has come from immigration, with 1.1 million people arriving in 2022 alone.
These migrants help support Spain’s pension and healthcare systems. Without them, Spain—like many other European countries—would have a hard time maintaining its social welfare programs.
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Spain resists anti-immigration trends
While far-right parties in much of Europe push anti-immigration policies, Spain has largely resisted these ideas. Some political groups have tried to restrict immigration, but they haven’t had much impact on national policy.
The Spanish government continues to support legal migration, emphasizing its economic importance.
Prime Minister Pedro Sánchez has defended the country’s pro-migration stance, stating, “Welcoming those seeking a better life is not just a moral obligation. It’s also essential for our future prosperity.”
The Spanish government plans to grant work permits and legal status to about 900,000 undocumented immigrants over the next three years. Officials believed that this will help fill job openings and increase tax revenue, strengthening the economy.
Changing travel, migration policies in the EU
Spain’s immigration policies could influence broader EU rules, especially with the upcoming launch of the European Travel Information and Authorization System (ETIAS).
The ETIAS will require visa-exempt travelers to get approval before entering the Schengen Area.
Spain’s welcoming stance may shape how these new policies affect both short-term visitors and long-term migrants, making it easier for foreign workers to join the labor market.
The Schengen visa system, which governs long-term stays, could also adapt to meet Spain’s need for skilled and unskilled workers. Tourists and business travelers may find Spain more accessible and economically dynamic.
Since foreign workers help sustain industries like hospitality and tourism, visitors can expect strong service quality and competitive prices.
At the same time, skilled migrants could benefit from Spain’s open work policies, possibly setting an example for other EU countries facing labor shortages.
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Influence on immigration policies
Spain’s success in using migration to boost economic growth may lead other EU countries to rethink their immigration policies.
While Germany and France struggle with slow economies and growing anti-migration views, Spain offers a different approach. Its ability to sustain growth with migrant labor could push the EU to reconsider work permits, asylum rules, and labor mobility policies.
Spain’s focus on legal migration, including temporary work programs and residency permits for undocumented workers, could also serve as a model for EU-wide reforms.
If Spain continues to outpace its neighbors, policymakers may feel more pressure to ease immigration restrictions and develop better integration programs.
A model for Europe?
Spain’s use of migration to fuel economic growth contrasts with the stricter policies of other European countries. While many nations struggle with aging populations and worker shortages, Spain shows how a well-managed migration system can boost the economy.
As labor shortages worsen across Europe, Spain’s approach could serve as a model for countries seeking sustainable growth while addressing workforce challenges.