How immigration is shaping the future of economic growth

The revelation that Spain is Europe’s unexpected economic success story of 2024 has astonished many. Earlier this year, The Economist ranked Spain among the top global performers in key metrics such as GDP growth, stock market resilience, low core inflation, falling unemployment, and manageable public deficits. 

But what lies behind this robust recovery? A flexible labor market, improved exports, and sustained public investment all play a role. Yet there’s a quieter force at work that few have acknowledged fully: immigration. As data increasingly shows, foreign-born workers are a driving factor in Spain’s labor market recovery and overall economic growth. 

The numbers don’t lie: migrants fuelling growth

EsadeGeo Senior Fellow Manuel Hidalgo said in El Pais that “a silent yet transformative phenomenon” is reshaping Spain’s workforce. Between 2019 and 2024, nearly 1.9 million jobs were created—of which over 71 percent were filled by people not born in Spain. Immigrants now represent more than 20 percent of total employment, up from 15.9 percent in 2019. 

Crucially, this isn’t a zero-sum game. Spanish-born employees have advanced into higher skilled positions—public administration, education, health care, and ICT—while immigrants are finding roles in sectors such as construction, food services, and transport. Rather than displacing native workers, they are complementing them, enabling a healthy redistribution of labor and allowing the economy to function efficiently across all levels. 

This is particularly significant in light of Spain’s aging workforce. The entire increase in the working population during this period came from foreign-born individuals. Within the Spanish population, job growth occurred only in the over-45 age group, while employment among 30- to 45-year-olds actually declined. 

The structural case for migration

Immigration is more than a short-term economic fix. As Ana Sainz, Director General of the SERES Foundation, said during an Esade event, “In today’s complex world, the aging population and lack of talent constitute major challenges for companies and society. Companies must continue to support diversity as a way of increasing their competitive edge whilst making society stronger.” 

Francisco Mesonero, Director General of the Adecco Foundation and Head of Sustainability at the Adecco Group, echoed this sentiment: “Migrant professionals fulfil a structural need and are crucial for ensuring economic growth.” 

The business case is clear. By hiring migrants, companies gain access to broader customer insights, hard-to-fill skill sets, and international perspectives. However, it’s important to avoid pigeonholing foreign workers into low-skilled roles and to create employment policies that support long-term integration. There’s a need to recognize foreign qualifications, offer tailored training programs, and establish clear legal pathways to work. 

Social realities and public perception

Despite evidence showing that working migrants make positive economic contributions, they often face public suspicion and political scapegoating. Spain’s macroeconomic indicators are positive, but many citizens still struggle with rising housing costs, job insecurity, and regional inequality. In areas with high migrant populations—such as Madrid, Catalonia, and the Balearic Islands—these tensions are sometimes wrongly attributed to immigration rather than broader structural issues. 

Mesonero warns of the danger of migrants becoming trapped in the shadow economy, exposed to exploitation without any safeguards. “Only an inclusive, bias-free outlook can improve social interaction and prevent any sort of discrimination,” he said. To align economic needs with public sentiment, political discourse must reflect reality rather than reinforce fear. 

Expats, economic migrants, and refugees

It is important to distinguish between different kinds of migrants—economic migrants, expats, and refugees—each of whom brings different challenges and opportunities. They are often perceived and treated differently, reflecting deep-seated biases in public and political discourse. 

Refugees, especially, encounter greater legal and systemic barriers to inclusion. EsadeGeo’s Ana Olmedo reports that since 2014, over 30,000 people have died or disappeared while attempting to cross the Mediterranean to enter Europe. Many who survive face complicated asylum procedures, red tape, limited access to work, and restrictions on where they can settle, even if they speak the language of a particular EU country. 

By contrast, the EU response to the war in Ukraine was swift and generous, adapting asylum rules and opening borders. As Human Rights Lawyer Marta Llonch noted, the difference in treatment is hard to ignore. “The Ukrainians, like the Sudanese and Malians, are fleeing from countries at war. They are all entitled to international protection but are treated in completely different ways.”  

David Sakvarelidze, Ukraine’s former deputy chief prosecutor, caused widespread outrage during a BBC interview when he said he was especially moved by the Ukraine war because he saw “European people with blue eyes and blonde hair being killed.” The remark was widely criticized for reflecting racial bias in how refugees from different regions are perceived and treated. 

The EU's policy puzzle

The EU has yet to form a cohesive migration strategy. The recently passed EU Pact on Migration and Asylum remains intensely disputed. There is still no consensus among EU states on how to manage migration. Over 160 civil society organizations have condemned the new pact, arguing that it undermines the right to asylum and creates barriers to justice. 

The 1951 Refugee Convention remains a cornerstone of international law, rooted in the idea that states have a duty to protect those fleeing persecution, regardless of their race, culture or birth country. Yet today’s EU framework often falls short, offering easily accessible protection to some, while others face overwhelming obstacles. 

Given the evidence to support the integration of migrant workers, this inconsistency undermines both human rights and Europe’s long-term economic interests. If migrants are crucial to supporting labor markets, welfare systems, and innovation, then an exclusionary policy is ultimately detrimental to the EU’s own goals. 

A test of values, not just economics

Spain’s current economic growth offers a potent counter-narrative to anti-migrant rhetoric. The data shows that immigration strengthens economies, as opposed to weakening them. Migrants are not an encumbrance; they are a vital part of the solution to Europe’s demographic and labor challenges. 

It is not enough to assess migrants’ value solely in economic terms. The way we treat migrants—whether economic workers, refugees, or expats—is also an indicator of our social values. The future depends not only on whether we welcome migration, but also how we manage it. That means aligning policy with reality, investing in integration, and ensuring fairness across the board. 

While migration, when managed correctly, can enhance workforce and macroeconomic sustainability, increasing GDP shouldn’t be the only reason we welcome migrants.