• 6.4

    2019

0.1

Up

Key drivers

Overall Wage Pressure (5.0)

Real wages are expected to grow positively this year, after falling for three consecutive years

Wage Pressure in High-Skill Industries (10.0)

Driven by strong wage growth in the financial and information sectors, the industrial wage skills gap continued to widen in Spain.

Talent Mismatch (10.0)

The vacancy rate has risen in Spain whilst long-term unemployment remains high. This suggests there is a large mismatch between the skills employers seek and those held by jobseekers.

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Education Flexibility

4.1
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Labour Market Participation

7.0
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Labour Market Flexibility

5.2
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Talent Mismatch

10.0
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Overall Wage Pressure

5.0
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Wage Pressure in High-Skill Industries

10.0
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Wage Pressure in High-Skill Occupation

3.5
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Chris Dottie

Managing Director, Hays Spain

View from the Ground

Spain’s labour market has seen little structural innovation in recent years, since no government has boasted a majority with which to reform. Indeed, some legislation has actively been damaging to the evolution of the world of work, such as recent regulations forcing companies to clock workers in and out of their place of work. Not a great advert for flexibility. However, the great concern for the future is related to the lack of young people in the workplace – demographic changes and a focus on time served means that only 14% of workers are now under 30, down from one in four a decade ago. The positive development has been Spain’s increasing competitive advantage in technology, becoming an innovation hub for many organisations.

Chris Dottie, Managing Director, Hays Spain

Key Skills in Demand

  • JAVA Developers
  • Data Engineers
  • Industry Sales
  • Process Engineers
  • Business Controllers

Market Insight

Private consumption and investment served as the key drivers for GDP growth in 2018, which grew by 2.6%. This follows three years of GDP growth at or above 3%.

The Spanish labour market has improved but significant challenges remain; while the unemployment rate is below its long-term average (steadily falling since 2013), Spain’s youth joblessness and involuntary part-time employment remain among the highest in the EU. In addition, employment growth is now starting to slow following years of strong gains, with potential consequences on disposable income and consumer spending in the years to come, as well as welfare costs.