Spain’s economy has expanded since 2013, but millions of households have yet to feel the benefits. Since 2018, GDP has grown by more than 11%, while business profits have risen 15% in real terms and household incomes have remained almost flat. Stock market records keep falling, but wages barely move. Job security remains weak, while rent and mortgage payments consume half a paycheck.
Pedro Sánchez’s government calls itself the most progressive in Spain’s history. Economic growth since 2018 has outpaced that of most of Europe, but the gap between companies and households has widened. The government has refused to adjust income tax brackets for inflation, meaning families pay more tax even as their money buys less. The OECD’s September 2026 report projects Spain’s GDP will rise by 2.6% in 2026 and 1.8% in 2027. Inflation is forecast to remain high, at 3.7% and 3.4%, so real incomes will keep shrinking.
Jobs are up, but the picture is mixed. Three million more people work now than eight years ago, yet unemployment has dropped by less than a million. Youth unemployment remains at 25%. Labor reforms have not ended insecurity; they have changed its shape. Temporary contracts are down, replaced by part-time and stop-start jobs. Cáritas says 18% of workers are now “working poor.” Official data from September 2026 shows that 1,144,827 contracts were signed in August alone, of which 704,553 were temporary. The average contract lasted just 37.85 days, the National Statistics Institute reports.
In 2026, Spain set a record, with more than nine million contracts signed. Yet 59% were still temporary, and nearly half were part-time or fixed-discontinuous. Average hours worked per employee have fallen since 2018. More people have jobs, but fewer hours are worked overall. BBVA Research reports that GDP grew 0.7% quarter-on-quarter and 2.6% year-on-year in the second quarter of 2026, driven by domestic demand. But most jobs remain unstable and low quality.
Housing costs have surged. The average rent or mortgage now takes up 50% of a typical salary. Fedea says hidden poverty among workers has risen by four points. Since Sánchez took office, average home prices have jumped 40%, and family financial wealth now stands at 155% of GDP, almost double what it was. Inequality is worsening. Market data puts the average monthly rent at about 1,204 € and the average mortgage payment at 825 €. In the second quarter of 2026, Spain’s average free-market housing price reached 2,355 €/m², up 12.5% year-on-year, information from the INE. The INE also recorded 61,417 home sales in July 2026 and a housing mortgage volume of €8.19 billion in June, with prices continuing to rise at double-digit rates. These figures point to a housing crisis that is neither local nor short-term.
The gap between generations is growing. Pensioners have seen their incomes rise thanks to automatic increases. Young workers under 25 have seen their real wages remain flat, even with a higher minimum wage. The difference is clear in who can afford a home or save for the future.
Poverty rates have barely moved. The Arope index, which tracks the risk of poverty and social exclusion, has dipped only slightly, while child poverty is up. The Ingreso Mínimo Critical, once hailed as a breakthrough, has not made a dent. Public services show little progress: hospitals face long waits and schools are stuck. Infrastructure also needs work, including roads and rail, as well as water systems. Disaster prevention for fires and floods still lacks funding and laws.
For many, little has changed since 2018. The National Statistics Institute’s Survey of Living Conditions says 36% of families still can’t handle an unexpected bill, and 34% can’t afford a week’s holiday. These figures are almost the same as eight years ago.
One impressive change came late in the current legislature, when Spain approved reforms to its dependency and disability laws. The government calls it a “refoundation” of the care system. The plan promises more services and less red tape, with €6.2 billion in extra funding over two years. Its goal is to end waiting lists for five million people and their families.
The Bank of Spain notes major shifts. Since 2013, immigration and job creation have fueled growth. Productivity has risen, especially in professional services and digital work, with gains in commerce too. The current account surplus is strong, thanks to tourism and, for the first time, non-tourism services. Household and company debt hit record lows in early 2026.
But growth has not brought broad well-being. Government crisis measures and flawed social policies have mostly helped the wealthy and business owners, along with pensioners. Missed tax reforms and a lack of new housing have compounded the imbalance. For most people, the gains of the last eight years are hard to find.
As reported earlier, even major cultural moments that grab headlines can distract from the deeper economic struggles facing Spanish families.
Spain’s economic run since 2013 looks strong on paper. But without real redistribution, most people are still waiting for their share. Until the government tackles the roots of inequality through tax reform and affordable housing, while providing real social support, growth will keep dividing winners from losers. Shared progress remains out of reach.
