The active population in Spain ages faster than the European average

Spain's demographic challenges persist despite the growth of the active population. A report from CaixaBank Research, which will be made public next Monday, highlights that between 2019 and 2026 the group in age and willingness to work increased by 8%, which is equivalent to more than two million people. However, this has not stopped the aging of the average number of workers and unemployed in Spain (both categories are included in the active population). Their average age has gone from 42.6 to 43.5 years in the same period. The increase of almost a year is greater than the EU average, including that of countries such as Germany and France, which register differences close to zero.

Foreigners lead the increase in people employed or looking for work. The analysis, carried out with data from the INE, shows that they contributed 1.2 million people to the active population during the last seven years, compared to the 149,000 nationals who joined in the same period. These figures represented increases of 41.3% in the case of the foreign active population and 0.8% for those of Spanish origin. Despite the respite provided by the entry of immigrants into the labor market, their average age has also increased. It has gone from 39.4 years in 2019 to 40.8 years in 2026.

The aging of the workforce goes beyond an inverting demographic pyramid, in which there are fewer and fewer young people to replace those approaching retirement age. There is a possibility that new generations are not entering the labor market. According to what the document states, the activity rate of people between 15 and 24 years old is lower than the European average, and it has not increased since 2019. This scenario can be explained by two factors, according to the analysis, which are “the prolongation of studies or difficulties in accessing employment due to lack of work experience.”

The population between 25 and 54 years old registers the highest activity rate. It has remained close to 90% between 2019 and 2026 and is above the EU average. At the other extreme, people over 65 years of age register the lowest rate, around 5%. The report mentions “retirements, early departures and problems of employability and technological adaptation” as causes. This scenario reflects the employment situation of more than 10 million inhabitants in Spain. In addition to the fact that seniors of retirement age already represent a fifth of the population, the INE predicts that 3.4 million people will join by 2030.

The figures reflect that the Spanish labor market faces difficulties in compensating for this transition towards the older age group. In general, if activity rates are maintained, the active population would grow by around 892,000 people by the end of the decade. On the other hand, the increase could reach 1.1 million if the activity rate reaches the levels of Germany, where, for example, more than half of young people between 15 and 24 years old participate in the labor market, compared to a third of Spaniards.

Although raising the activity rate can cover part of the gap left by people of retirement age, the analysis concludes that the challenge continues to boost the working-age population.