2The country, its people and quality of life

2.2 Population and human resources

The population of Spain in 2021 was over 47 million people, with a population density of almost 94 inhabitants per square kilometer.

Spain is a markedly urban society (see Table 1), as evidenced by the fact that almost 32% of the population lives in provincial capitals.

Table 1

Spanish is the official language of the country. There are other Spanish languages that are also official in the corresponding Autonomous Communities (regions), according to their “Statutes of Autonomy”. Education is compulsory until the age of 16 and English is the main foreign language studied at school.

Spain has a labor force of more than 23 million people according to the Labor Force Survey (released in the fourth quarter of 2021). Spain’s population is relatively young: 15% is under 16 years old, 65% is between 16 and 64 years old, and only 20% is 65 and over, according to 2021 figures. As highlighted in Table 2, Spain has a highly diverse and multicultural population.

Table 2

Spain is particularly noted for the contribution from, and the integration of, these groups, as well as for the absence of cultural conflict.

Spain’s labor force structure by economic sector underwent significant changes some time ago, with an increase in the active population in the services sector and a decrease in the number of workers employed in farming and industry. Today, the services sector is by far Spain’s main employer (Chart 1 and Table 3).

The labor force is highly qualified and capable of adapting to technological changes.

Lastly, in keeping with the commitment entered into with the European Union to promote job creation, the Spanish government has implemented significant reforms to the job market in recent years, introducing a greater degree of flexibility in employment.

Like our neighboring countries, and as a result of the recent global crisis and the effects of the COVID-19 pandemic on the economy, Spain has launched an ambitious program of structural reform with a view to boosting economic growth and creating jobs.

The Spanish government, in keeping with the commitments entered into by the European Union to promote employment, implemented major labor market reforms in line with the trends observed in neighboring countries and the proposals made by various economic agents and institutions and international economic advisers. The reforms aimed to introduce greater flexibility, reduced the dual nature of the job market and improve the employability of workers. A new labor reform was passed in 2022 with the main objective of ensuring availability of skills in the Spanish labor market and tackling the mismatch between labor supply and demand.

This, among other factors, has led to the creation of 2.5 million jobs since 2014. This positive evolution, which was interrupted due to the negative impact of the COVID-19 public health crisis in 2020, resumed its upwards trend in 2021.

A number of procedures have also been introduced to facilitate the entry, residence and permanence in Spain, for reasons of general interest, of foreigners who plan to invest and create jobs in Spain or who are highly qualified professionals.

Chart 1

LABOR FORCE STRUCTURE BY ECONOMIC SECTOR IN 2021

Table 3

Source: National Statistics Institute. 2021. Labor Force Survey.