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Spain’s migration system driving growth

21 January 20260 comments

Migration is responsible for 80 per cent of Spain’s economic growth over the past six years and ten per cent of social security revenues, according to Spanish Prime Minister Pedro Sanchez.

And migrants represent just one per cent of social security spending, the Prime Minister said, speaking at a recent diplomatic conference.

“Spain is a country that firmly defends a legal, safe and orderly migration model, but also one that is open and humane, in contrast to those who seek to close borders and deny migrants the minimum level of dignity,” Mr Sanchez said.

He defended his nation’s regular migration system, stressing that “the data invites optimism” thanks to the policies pursued by the executive, whose key pillar is immigrant workers.

“This migration accounts for 80 percent of the growth recorded in Spain over the past six years, contributes 10 percent of Social Security revenues while representing only 1 percent of expenditure,” Ms Sanchez said.

He said there was no need to fear the so-called “pull factor,” as irregular immigration represented just six per cent of the total.

“Those who propose a Spain closed in on itself are offering a Spain that will not be prosperous, that will be poor and that, without a doubt, will not have sufficient resources to sustain its welfare state,” the Prime Minister said.

Mr Sanchez said his government would always oppose the externalisation of migration policies.

He acknowledged that the main challenge future generations will face was the “demographic challenge”, the demographic winter affecting Europe and Western societies, which must be addressed by “combining birth-rate policies with the family policies we are promoting from the Spanish government”.

According to Mr Sanchez, tackling the migration challenge means “cooperating with countries of transit and origin” of migratory flows.

“This is what Spain is doing, and the data speak for themselves: our model works,” he said.

Mr Sanchez said his government would always oppose the externalisation of migration policies.

“We will always oppose the externalisation of migration policies and, of course, the creation of ‘hotspots’ outside the European continent,” he said.

Mr Sanchez described these third country destinations as “ineffective” in addressing the challenge of irregular migration.

Spain’s migration system has evolved from a decentralized model to a more centralized one, focusing heavily on legal pathways through labour, training, and family ties, with recent reforms aiming to streamline processes and expand regularisation options.

The system includes programs aimed at integrating migrants into the workforce, particularly, in agriculture and horticulture.

Key features include bilateral labour agreements, especially with Latin America, student pathways, and the crucial ‘arraigo system for irregular migrants to regularise their status.

 with significant 2024/2025 changes establishing a single digital platform for applications.

Spain also encourages digital and nomad visas which are popular options for remote workers and retirees, with new centralised systems improving consistency.

The result of all of this is a working-age population that has nearly doubled compared with other countries in western Europe in recent years.

Of the 468,000 jobs created across Spain last year, roughly 409,000 were filled by migrants or people with dual nationality, many of them from Latin America, but also from across Europe and Africa.

Bank of Spain data shows immigration contributed more than 20 per cent to the near three percent GDP per capita income growth during 2022-2024.

Spain’s approach to migration comes as countries across Europe wrestle with a wicked problem.

As politicians on the right compete for votes by peddling hostility towards migrants, ageing populations are seeing a dwindling pool of workers who can pay for pensions and support the welfare state.