Social tensions are rising in Catalonia: despite economic growth, nearly one in four residents faces poverty. Challenges such as access to affordable housing, an aging population, and the impact of new technologies on jobs have created a situation where traditional support mechanisms are no longer effective. Regional authorities have released a new report showing that economic growth is not bringing relief to most families.
Money and inequality
Catalonia’s economy is showing steady growth, but income distribution remains highly unequal. The wealthiest residents control nearly a third of all resources, while half the population holds only a small share of the total wealth. In recent years, salaries have officially increased, but inflation and rising prices for basic goods have wiped out these gains. Families with children and the elderly are especially hard hit.
The cost of living in the region continues to rise. Over the past ten years, housing prices have increased by a third, and rents have more than doubled since the start of the century. For many families, housing expenses have become the main factor pushing them below the poverty line. Even those who work cannot always afford decent living conditions: about 12% of employed people remain below the minimum income level.
Aging and social challenges
Catalonia is aging rapidly: nearly one in five residents is over 65, and the number of elderly people living alone exceeds 300,000. Meanwhile, the region’s birth rate has reached a historic low. The healthcare and social welfare systems are under severe strain, and the gap between urban and rural areas is becoming increasingly pronounced.
Education is also failing to equalize opportunities: children’s success still largely depends on their families’ social status. This entrenches inequality and prevents young people from breaking out of the cycle of poverty. Immigration partly offsets the decline in the number of young people, but calls for new solutions for integration and support.
Technology and the labor market
The impact of artificial intelligence on the labor market is becoming increasingly evident. According to experts, nearly a third of jobs in Catalonia could be automated in the coming years. For 15% of workers, half their tasks can already be performed by machines. This poses a threat of mass job losses and demands new approaches from the authorities in training and social protection.
The social support system partially cushions the effects of inequality, but coverage remains limited. Only a third of at-risk families receive minimum benefits, and guaranteed income is available to only a small portion of those in need. Authorities acknowledge that without reforms, the situation will only worsen.
Solutions and new risks
The report emphasizes that overcoming the crisis requires measures aimed at reducing the cost of living, expanding access to housing, and protecting the most vulnerable groups. Special attention is given to children, who are more likely than others to fall into poverty. Authorities are also considering support options for the elderly and reforming the healthcare system to address the consequences of an aging population.
Parallels with other regions of Spain are becoming increasingly apparent. For example, Andalusia recently discussed the aftermath of a devastating storm that dealt a serious blow to both the economy and social stability. More details on how the disaster changed the lives of farmers and the tourism sector can be found in the report about the catastrophic losses after the storm in Andalusia.
In recent years, Spain has faced similar challenges: rising housing costs, an aging population, and technological change affecting all regions. In Madrid and Valencia, reforms to social support and fresh approaches to migrant integration are also being debated. The impact of artificial intelligence on employment is sparking national debate, while issues of housing availability and support for families with children are moving to the forefront of the political agenda.
