Spain to Grant Legal Status to Hundreds of Thousands of Undocumented Workers

Spain is preparing to launch a significant programme to grant legal status to approximately half a million undocumented workers, with a focus on matching them to jobs to stimulate economic growth, the country's top immigration official has told Reuters.

The initiative, announced in January, has drawn sharp criticism from far-right leaders across Spain and Europe. Yet, the Socialist-led coalition government argues that migration will provide a younger workforce, helping the Spanish economy outpace its European peers as the population ages.

The programme's substantial demand was highlighted during a Supreme Court hearing on Friday, following an injunction filed by far-right groups. State broadcaster TVE, citing unidentified sources, reported 549,596 applications in the first month, slightly exceeding initial expectations.

TVE also claimed 91,505 temporary work permits have been granted, though the ministry declined to confirm these figures to Reuters. Secretary of State for Migration Pilar Cancela previously noted the state could handle up to one million applications, acknowledging requests would outnumber permits.

The authorities also have a plan to help migrants find formal jobs, she added Spain needs approximately 2.4 million more people paying into social security over the next decade to sustain its welfare state, according to official estimates.

Think-tank Funcas estimates there are around 840,000 undocumented migrants working off the books, mainly from Latin America.

Out of the shadows

The job-matching strategy aims to move thousands out of the shadow economy to stem labour shortages in key sectors.

"It's a huge opportunity to harness the potential of all these people who are already helping to build the country alongside us, often working in precarious conditions," Cancela said, adding "real integration" would follow once they find a formal job. The Migration Ministry will conduct a voluntary survey of those granted provisional work permits to understand their skills ‌and where they would like to work.

The government is partnering with business groups in the construction, tourism, transport and care services sectors to assess labour demand and coordinate with regularised migrants looking for work. A research paper by Esade ⁠Business School warned that a previous programme to regularise migrants in 2005 led to ⁠some job losses in the informal sector.

It recommended more labour inspections and programmes to support the transition to formal employment. Cancela said the ministry's ‌plan would also be ​accompanied by increased labour inspections.

"I think it's also a major ‌opportunity to bring certain situations to light, because ​when people come forward in the regularisation process, we will learn about their circumstances," she said.