Agriculture and tourism are important sectors for the Spanish economy, and the country has also been one of the leaders in the production of technologies to harness renewable energy. Unemployment is amongst the highest in the EU, and the labour market continues to pose a number of challenges for the education and training system; VET policy measures have been taken to improve employability (and self-employment in particular) of young people and the long-term-unemployed by improving their skills and qualifications.
Looking to the future, employment is projected to rise over the period to 2025, but to remain below its pre-2008 financial crisis level. Employment growth will be mainly in the distribution and transport sector (mainly in hotels and catering), with most job opportunities for service and sales workers.
Spain is forecast to experience a significant increase in demand for highly skilled workers, whilst the demand for medium- and low-skilledlow-skilled workers will also increase to a lesser extent. Meanwhile, by 2025, the share of the labour force with high- and medium level qualifications is projected to increase, whilst the share of workers with low or no qualifications is set to decrease in the same period.
Spain’s working-age population (15-64) is projected to decrease in the period to 2025, with labour market participation forecast to fall. Looking forward, Spain’s old-age dependency ratio is expected to grow until 2050 then decline in the following decades.