Spain: A Critical Look at the Labor Market

Since the Covid-19 pandemic, the Spanish labor market has been experiencing encouraging data : unemployment is declining, employment is increasing, and the number of temporary contracts is decreasing each year. The dynamism of the labor market can partly be explained by incoming migration flows , which support employment and help mitigate the aging of the workforce. However, structural issues persist , particularly youth unemployment, involuntary part-time work, and long-term unemployment. Additionally, there is stagnant productivity, indicating that the growth model still shows weaknesses .