Spain's economic growth fueled by immigration

Spain's economy is experiencing a boost, outperforming most European countries. This growth is fueled not only by healthy domestic consumption and a strong investment climate, but also by a growth in employment. 
In the last quarter of 2023, the Spanish economy advanced at a 0.6% annual pace and its growth trajectory significantly surpassed the eurozone and EU averages, both stagnating at 0%. 

The role of immigration

Spain witnessed one of the strongest employment increases in Europe during the last quarter of 2023. Immigration played a significant role in this growth. According to Raymond Torres, chief economist at Funcas, a Madrid-based think tank, immigrants accounted for a substantial portion – 64% – of newly created jobs and half of Spain's overall economic growth in 2023.

Traditionally, immigrants filled low-skilled vacancies in sectors like construction and domestic help. However, this trend is changing. Migrant job growth is now more evident in the technology and science sectors, more than doubling from 2018 to 2023. The hospitality industry also saw a 30% rise in immigrant workers over the same period.

While Spain's unemployment rate has reached its lowest point since 2007 (at 11.8%), it remains the highest in Europe. Companies still struggle to fill specific positions and attracting qualified foreign candidates is seen as potentially more efficient than retraining the existing workforce.

To facilitate the immigration wave, Spain has implemented visas for highly skilled professionals and taken steps to recognize the equivalence of certain Latin American qualifications, addressing a challenge that has interfered with immigrant integration in other European countries such as Germany. 

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