- Immigrant Times
- Sep 18
- 5 min read
Updated: 5 hours ago
Immigrant workers are a major contributor to Spain’s economic growth
The Spanish government has unveiled a sweeping plan to regularise up to 500,000 undocumented migrants by 2027, positioning itself as a European outlier in both scale and intent.
By William Chislett (Real Instituto Elcano) and The Immigrant Times*
Othmane and Bandja, two migrants from Morocco and Guinea who work for Haizea Wind, a wind turbine factory in Bilbao with an annual turnover of €200 million. For its European expansion, the company plans to employ young, ambitious individuals, regardless of their origin. (Photo & info: Fernando Domingo-Aldama, El País newspaper)
September 2025: In a country often caught between native demographic decline and economic ambition, foreign workers have emerged not just as labourers, but as linchpins of Spain’s growth story. A recent article by William Chislett for the Real Instituto Elcano, titled ‘Foreign workers power economic growth’*, offers a review of immigration’s role in Spain’s economy.
The Immigrant Times adds that at a time when several European countries, including Britain, France and Germany, plan to send thousands of migrants back to their home countries or even deport them to third countries, Spain is charting a very different course. The Spanish government has unveiled a sweeping plan to regularise up to 500,000 undocumented migrants by 2027, positioning itself as a European outlier in both scale and intent.
William Chislett puts foreign labour within Spain’s broader economic architecture, highlighting how immigrants have sustained key sectors such as agriculture, hospitality, construction, and care work, amid native population ageing and workforce shortages. But the study goes further: foreign workers are not merely filling gaps; they are actively shaping Spain’s international competitiveness. According to Elcano’s Global Presence Index, Spain ranks 13th globally in economic presence, with immigrant labour contributing to export capacity, service expansion, and domestic consumption.
Extracts from William Chislett’s* review of the importance of immigrant labour to Spain’s economy
The Spanish economy is growing briskly, largely powered by foreign workers. These workers, particularly in the hostelry, construction, agricultural and social care sectors, now account for 14 per cent of total jobholders registered in the social security system. The foreign-born population surged from less than one per cent of the total population in 1975 to 19 per cent (9.4 million people) by the end of 2024.
But for immigration, Spain’s rapidly ageing population would hardly have grown, as the fertility rate of 1.12 children is well below the replacement rate (2.10) at which population levels would be maintained. In 1996, the United Nations forecast that Spain’s population would fall sharply by 2050 from almost 40 million to around 28 million. Most of the 8.2 million rise between 2000 and 2024 to 48.8 million was due to net international migration. Of the five most populous EU countries, Spain’s population has increased by far the most in relative terms (+20.2%) over the last 24 years
Population change from 2000 to 2024
(Source: World Bank Data)
Spain: From 40.6 million to 48.8 million (+20.2%)
France: From 60.9 million to 68.5 million (+12.4%)
Italy: From 56.9 million to 58.9 million (+3.5%)
Germany: From 82.3 million to 83.5 million (+1.4%)
Poland: From 38.2 million to 36.5 million (-4.4%)
Meanwhile, Spain’s economic growth has consistently outpaced that of the EU as a whole for the past three years: 3.2% in 2023, 2.9% in 2024 and around 2.6% in 2025 (EU averages of 0.4%, 1.1% and 1%, respectively). Foreigners are driving the increase in the working-age population much more than in the other three large EU economies. The unemployment rate (10.3%) is the lowest since 2007, though almost double the EU average.
Immigrants have not taken jobs away from Spaniards; many of them arrived during the country’s 1997-2008 economic boom and did the work that Spaniards were less inclined to do. To some extent, this explains why Spaniards are predominantly welcoming of immigrants. Also, many Spanish families have relatives who emigrated in the 1950s and 1960s, helping them to view migrants with greater understanding and sympathy and to feel relatively comfortable with them. Public opinion on immigration stands out as notably positive in the European context.
In May, new regulations went into effect that eased migrants’ ability to obtain residency and work permits, and parliament began debating a bill to regularise undocumented migrants. The call was the result of a petition signed by 600,000 people and endorsed by 900 non-governmental organisations, business groups and the Roman Catholic Church.
The Immigrant Times explains Spain’s reform plan to offer migrant workers settled status
At a time when several European countries, including Britain, France and Germany, plan to send thousands of migrants back to their home countries or even deport them to third countries, Spain is charting a different course. The Spanish government has unveiled a sweeping plan to regularise up to 500,000 undocumented migrants by 2027, positioning itself as a European outlier in both scale and intent.
At the heart of the reform lies an expanded and diversified arraigo system, Spain’s legal mechanism for granting residency based on personal ties to the country. Previously limited to social integration after three years of residence, the new framework introduces five distinct pathways:
Social Arraigo: For those with community ties and integration efforts
Labour Arraigo: Based on employment history
Educational Arraigo: For migrants enrolled in training or academic programs
Family Arraigo: For those with Spanish relatives
Reintegration Arraigo: For individuals who previously held legal status
The minimum residency requirement has been reduced from three years to two, dramatically expanding eligibility. Permits now allow migrants to work immediately, whether as employees or entrepreneurs—a shift that reflects Spain’s urgent need for labour in agriculture, elder care, and hospitality.
Spain’s population is ageing rapidly, and rural depopulation threatens entire regions. The regularisation plan is not just humanitarian—it’s strategic. By integrating undocumented migrants into the formal economy, Spain hopes to stabilise its workforce, boost tax revenue, and revitalise underserved areas.
Despite its ambition, the reform has drawn criticism from rights groups. Notably, asylum seekers—even those who have lived in Spain for years—are excluded from the new pathways. Time spent awaiting asylum decisions no longer counts toward arraigo eligibility, forcing rejected applicants into two additional years of irregular status before they can apply.
Unaccompanied minors and those without formal documentation of work or study also risk falling through the cracks. NGOs warn that without targeted outreach and legal support, the reform may inadvertently reinforce existing inequalities.
Despite its ambition, the reform has drawn criticism from some rights groups. Notably, asylum seekers, even those who have lived in Spain for years, are excluded from the new pathways. Time spent awaiting asylum decisions no longer counts toward arraigo eligibility, forcing rejected applicants into two additional years of irregular status before they can apply.
Unaccompanied minors and those without formal documentation of work or study also risk falling through the cracks. NGOs warn that without targeted outreach and legal support, the reform may inadvertently reinforce existing inequalities.
While countries like the UK and France tighten borders and outsource asylum processing, Spain’s approach stands in stark contrast. It treats migration not as a crisis to contain, but as a social and economic reality to manage. The plan echoes past regularisations, such as the 2005 initiative that granted status to over 500,000 migrants, but with more structured legal pathways and long-term integration goals.
* William Chislett is a Senior Fellow at the Elcano Royal Institute. He covered Spain’s transition to democracy for The Times of London between 1975 and 1978. He was then based in Mexico City for the Financial Times between 1978 and 1984. He returned to Madrid permanently in 1986.
* The Immigrant Times carried out its research in August 2025
Further reading: Teaching and Training refugees in Spain || Asylum seekers benefits in Europe || Immigrants create Wealth || European Migration and Asylum Pact ||
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