Spain’s economic resilience and growth in recent years stand out as notable examples of
how a welcoming approach to migration can contribute positively to national prosperity.
While several European economies face challenges due to ageing populations and stagnant
growth, Spain has successfully leveraged its inclusive immigration policies to bolster its
economy and enrich its social fabric.
Economic Contributions of Migrants
One of the critical reasons behind Spain’s economic strength is its recognition of migrants as
valuable contributors to the labour force. Migrants in Spain have filled crucial gaps in the
workforce, particularly in sectors such as agriculture, construction, and hospitality—areas
essential to the country’s GDP. The infusion of migrant labour has supported these industries
and helped alleviate labour shortages, ensuring continued productivity and competitiveness 1 .
Spain’s strong export figures and robust consumption have only been made possible thanks
to the health of the country’s labour market. In the third quarter of this year, Spain’s
unemployment rate fell to 11.21%, its lowest level since the financial crisis of 2008 2 . A supply
of available workers, mainly boosted by immigration, has allowed Spanish companies to
increase production without overly straining their budgets.
“The foreign-born active population grew by 9.1% year-on-year last quarter, compared to a
native population growth of 0.6%,” said Professor Ruben Dewitte. He added: “While this can
support economic expansion, the stagnant productivity per full-time equivalent job also
highlights the need for policies that ensure these workers are integrated into the economy
productively to spur economic growth further.
Ángel Talavera, head of Europe economics at Oxford Economics, noted that while “the surge
in migration” has helped to boost Spain’s growth, it is important to distinguish between
headline GDP and GDP per capita. As the Spanish population grows, the average economic
output per person has not increased as dramatically as the national output.
Demographic Benefits
Like many European nations, Spain faces demographic pressures due to an ageing
population and low birth rates. Migrants have played a crucial role in balancing these trends.
The influx of younger, working-age migrants has helped rejuvenate the population,
sustaining public services and supporting the pension system through their contributions to
the workforce. 3
Fiscal and Social Integration Policies
Spain’s proactive integration policies have also been pivotal. By facilitating pathways for
legal residency, providing language and skills training, and ensuring access to social
services, Spain has promoted the successful integration of migrants into society. This
support fosters a sense of belonging and boosts economic participation, enabling migrants
to contribute more effectively to economic growth. The Spanish government has recognised
that investment in integration yields long-term benefits, creating a virtuous cycle in which
migrants can thrive, contribute to tax revenues, and participate in consumer
spending—further propelling the economy. 4 .
A Balanced Approach
While challenges exist, Spain’s strategy exemplifies a balanced approach prioritising
economic needs and social cohesion. By seeing migration as an opportunity rather than a
burden, Spain has tapped into a diverse talent and labour pool, positioning itself as an
economically resilient and inclusive society. This approach has contributed to sustained
growth, demonstrating that welcoming policies can be humane and financially beneficial.
Spain’s success underscores the importance of comprehensive immigration policies that
recognise migrants’ potential as workers and as integral members of society who drive
innovation, enrich culture, and support economic stability. If the rest of Europe and the
United Kingdom could follow the same recipe successfully, it would lead to a new age of
inclusive growth in the European region.
1 [Euronews](https://www.euronews.com/business/2024/10/31/why-is-spains-economy-growing-faster-
than-those-of-its-eurozone-peers)
2 Think ING](https://think.ing.com/articles/spain-continues-to-be-one-of-the-growth-engines-
of-the-eurozone/)
3 https://www.pensionpolicyinternational.com/impact-of-spains-aging-population-demographic-shifts-
effect-on-major-sectors/
4 https://www.migrationpolicy.org/article/spain-immigration-integration-multilevel
