Immigrants Drove 80% of Spain’s Economic Growth in Five Years. In recent years, Spain has experienced a record influx of migrants, becoming a key driver of economic growth. New workers are supporting the labor market and helping to offset population aging, but their arrival also sparks heated debates about the future of the social system.
In 2025, the Council for Economic and Social Affairs published data that is hard to ignore: nearly 80% of Spain's GDP growth from 2019 to 2024 was generated by immigrants. During this period, between 600,000 and 700,000 people arrived in the country each year—the equivalent of the population of a large city. Today, one in five residents of Spain was born abroad, and the total number of foreigners has reached 9.46 million.
The economic effect is clear: thanks to the influx of migrants, Spain maintains a growth rate above the European average—2.7% in the first quarter of 2025. Foreigners take jobs that lack suitable local candidates, filling more than 150,000 vacancies that remain unclaimed by Spaniards. Seven out of ten new employees registered in the social security system are foreigners.
A double reality
However, behind these figures lies a complex social dynamic. According to Funcas, there are already 840,000 people in the country with unresolved legal status. The authorities are trying to address the problem with another mass legalization, which aims to cover up to half a million people. Similar measures have been taken before: in 2000 and 2005, Spain carried out large-scale legalization campaigns, which led to increased formal employment among migrants and higher tax revenues without noticeable pressure on the budget.
Nevertheless, public debate is becoming increasingly heated. In April 2025, the Ministry of Inclusion recorded nearly 40,000 hate messages on social networks related to migration. Opponents of open borders fear overloading the healthcare and education systems, although experts note that migrants, on average, use social services less than locals and have a higher employment rate.
Economy and Labor Market
According to economists, mass legalization helps bring thousands of jobs out of the shadows, raise wages, and increase budget revenues. BBVA Research estimates that the effect on GDP and inflation will be moderate—about 0.5 percentage points—since most of those being legalized are already working and consuming in the country. The main benefit is growth in official employment and tax revenues.
At the same time, competition in the labor market intensifies primarily among migrants themselves, especially in low-skilled sectors. Some experts warn: if informal employment is not addressed, the problem will recur again and again, particularly in domestic work and service platforms.
Social Challenges
Migration has become not only an economic but also a political issue. In parliament, the government faces accusations of allegedly encouraging violations of migration rules. However, no study confirms the existence of a so-called "pull effect" — a massive influx of migrants due to legalization. On the contrary, surveys show that public perception of the number and characteristics of migrants often does not match reality.
Experts emphasize that population growth requires investment in infrastructure, housing, and social services. Issues with access to healthcare or education are linked not so much to migration, as to the system's insufficient adaptation to the new scale.
Impact on the future
Immigration helps Spain sustain its pension system and offset demographic aging, although migrant contributions are still below average. At the same time, hopes for a sharp rise in birth rates due to newcomers do not materialize: over time, their rates approach the national average.
Overall, recent experience shows that without the inflow of migrants, Spain’s economy could not have grown at such a pace. But for sustainable development, the country needs to not only integrate new residents but also modernize its social institutions to avoid overload and social tension.
