Concern is growing in Catalonia over the fact that a significant share of employed residents remain unable to escape poverty despite having official jobs. This issue affects not only individual families but the entire regional economy, as it undermines trust in the labor market and exacerbates social tensions. As El Pais notes, even those with stable employment often struggle to cover basic expenses due to rising prices and increasingly costly housing.
According to El Pais, in 2024 the poverty rate among working people in Catalonia reached 10%. This is slightly lower than the previous year, but still higher than in most European countries. The main reasons are high rental costs, part-time work, and unstable employment contracts. The most vulnerable remain agricultural workers, domestic staff, hospitality employees, and retail workers. Salaries in these sectors are traditionally lower, and working conditions frequently unstable.
Sectoral differences
In agriculture, livestock and fishing, the poverty rate among workers reaches 31.5%. For domestic workers, the figure is 23%, and in hospitality it stands at 19.3%. Retail is not far behind: here, 14.3% of employees live in poverty. These figures highlight that the problem is not confined to a single sector, but affects broad segments of the economy.
Since 2018, Spain has seen a gradual decrease in the share of working poor, supported by regular minimum wage increases and government assistance. However, experts note that these measures have not been enough to bring about a decisive change. The main obstacle remains housing costs: families below the poverty line are forced to spend up to 43% of their income on rent and nearly as much on mortgages. In comparison, non-poor households dedicate significantly less to these expenses.
Labor market impact
Another ongoing issue is the prevalence of part-time and temporary contracts. According to El Pais, more than 32% of workers have to accept part-time jobs even though they would prefer full-time positions. This not only lowers overall income but also widens the pay gap between population groups. Paradoxically, the economy continues to see a large amount of unpaid overtime, pointing to structural problems in the labor market.
The impact of rising prices for goods and services should not be underestimated. In recent years, including the aftermath of the war in Ukraine, inflation in Spain has accelerated, hitting the most vulnerable workers hardest. According to El Pais, companies often used the situation to boost their profit margins instead of raising wages.
Housing and social support
The housing issue has become one of the main factors aggravating poverty among the working population. According to El Pais, families living below the poverty line spend almost twice as much on rent and mortgages as those without financial difficulties. This creates a vicious cycle: even as wages rise, a significant portion of income is spent on housing, making it impossible to improve quality of life.
The Catalonia authorities and trade unions insist on the need for further increases in the minimum wage and the introduction of additional protections in employment contracts. Special attention is paid to women and migrants, who are most at risk. As El Pais notes, these groups are more often affected by temporary contracts, part-time employment, and high housing costs.
In light of recent changes in the labor market, it is worth noting that in Spain, most new jobs in recent years have been filled by foreigners. This is confirmed by an analysis by russpain.com on the impact of migration on employment, which highlights that the influx of migrants affects the structure of the labor market and increases competition for low-paid jobs.
The issue of in-work poverty is not new to Spain. In recent years, similar trends have been observed in other regions of the country, especially in Andalucía and Valencia, where rising housing costs and unstable employment have also contributed to a growing number of working people living in poverty. In 2023, measures were discussed to cap rent increases and introduce additional social benefits, but their effectiveness remains a subject of debate. Overall, the situation in Catalonia reflects nationwide challenges related to housing affordability, the labor market structure, and the ongoing need for social policy reforms.
