The Spanish labor market is experiencing significant changes as more than 21.8 million individuals find themselves employed. Yet, underlying issues, such as the generational transition from baby boomers, youth unemployment, job precarity, and talent shortages, are increasingly evident. Mónica Pérez, the Director of Communication and Studies at InfoJobs, noted, “Spain has achieved positive economic growth in recent years, but it is precisely this dynamism which has caused considerable imbalances within the labor market.” Despite positive employment figures, high unemployment rates coexist with challenges to fill key positions across strategic sectors.
With the average baby boomer reaching retirement age, the challenge of generational succession is coming to the forefront. Although pinpointing the exact start of the baby boom is complex, it is commonly accepted to have begun around 1958. Consequently, by 2024, the oldest members of this generation will be 66 years old and nearing or already entering retirement. The legal retirement age for those who have contributed for more than 38 years will be 65 years, increasing to 66 years for those with less contribution. By 2025, the parameters for early retirement will tighten, pushing some to wait until they reach the age of 66 years and eight months, as indicated by the Social Security guidelines.
According to the National Statistics Institute (INE), people over 65 currently represent 20.4% of the population and are projected to rise to 30.5% by approximately 2055. The dependency ratio, which measures the proportion of dependent individuals aged 16 or younger and those aged 64 and older compared to the working-age population, is forecasted to peak historically at 75.3% by 2052, then gradually decrease.
This aging population trend presents not only significant challenges for the pension system—expected to rise by 2.8% by 2025 according to the INE—but also impacts other sectors, including healthcare and education, which face increasing demands for skilled professionals amid a dwindling applicant pool. Mónica Pérez emphasized, “Mass retirements significantly affect positions requiring experience and technical know-how.” Notably, younger generations often favor urban living, exacerbated by labor shortages for roles traditionally filled by hands-on workers, particularly those related to agriculture and livestock management.
Data demonstrates the urgency of this generational shift; vacancies requiring at least four years of experience have surged by 10% from January to November 2024, compared to the previous year, even as the number of qualified applicants aged 25 to 34 decreases. This shift highlights the challenging transition of passing on knowledge, especially for high-specialization roles.
Addressing the generational transition is imperative. InfoJobs highlights the necessity for effective knowledge transfer and labor market adjustments to embrace generational coexistence within workplaces. “The current labor market involves four generations working side by side, which amplifies disparities due to differing social, educational, and labor contexts, creating challenges in adapting to digital competencies and employment perceptions.” The lack of adequate management of generational transitions could result in skill gaps, demotivation, financial risks, and disruptions to organizational culture.
Leonel Pérez Herrera, president of the Congress of Labor, sheds light on regional variations of these trends, noting, “The lack of skilled labor heavily impacts sectors such as construction, tourism, and agriculture.” He points to the growing reluctance of young urban dwellers to engage in manual labor, preferring desk jobs or remote work. Specifying the crisis, he states, “There is a trend toward the absence of manual workers, as young individuals gravitate to digital formats and automated environments.” While automation has minimized demand for laborers, current labor shortages necessitate relying on migrant workers, unable to fully satisfy the increasing market needs.
Pérez Herrera emphasizes the urgent need to cultivate enthusiasm among young individuals for engaging with traditional sectors, stating, “A new labor culture must be promoted to entice youth toward these areas.” This revaluation includes enhancing work conditions and offering competitive compensation to offset physical labor challenges.
With digital trends and automation dominating the labor market, traditional sectors must innovate to maintain relevance. “It is necessary to appreciate manual jobs to make them attractive to both new generations and the workforce overall,” Pérez Herrera concludes.
Overall, as labor markets evolve due to generational shifts, strategic adjustments and skill development will be key to bridging existing gaps and ensuring sustainability within troubled sectors.