Economic Growth in Spain Shadows Persistent Inequality and Wage Disparities

Despite Spain's economic expansion, significant inequalities and wage gaps persist, disproportionately affecting younger generations and rural areas. A recent report published in the Nota de Economía by Alicia Romero sheds light on the uneven benefits of Catalonia's economic growth, where one in three children remains at risk of poverty. Economist Olga Cantó highlights that while Spain's net wealth increased by 20% between 2005 and 2022, this wealth has concentrated heavily among the richest 1%, whose wealth doubled — leaving the bottom 50% without appreciable gains.

Inflation has outpaced salary growth, with prices rising 26.8% between 2014 and 2023, while wages only increased by 25.3%, eroding purchasing power. Housing affordability is another critical concern: home ownership among Spaniards under 35 years old has dropped dramatically from 66% in 2002 to 31.8% today. The government has prioritized tackling inequality through reform initiatives, including expanding the Guaranteed Citizen Income program, which currently reaches only half of severely impoverished households. Economic expert Branko Milanovic warns of rising inequality within affluent nations fueling populism.

Conversely, Spain's cooperative work sector offers a promising model for reducing wage inequality and fostering social cohesion. Data from the Spanish Confederation of Associated Work Cooperatives (Coceta) reveals that over 16,000 cooperatives were created between 2014 and 2024 amid economic and health crises. In 2024 alone, 78% of new cooperatives were associated work cooperatives. These entities provide more youth employment (23.2% vs. 21.6%) and higher gender equality (54% women) compared to conventional companies.

Cooperatives significantly reduce wage disparities: the salary gap between top and bottom roles is 2.6 times versus 3.9 times in commercial firms. Moreover, 61% of cooperative employment occurs in rural and mid-sized cities, with cooperative wages in these areas reaching 91% of the national average, in contrast to 79% in traditional businesses. Luis Miguel Jurado, president of Coceta, emphasizes that cooperative work "is more than a business formula; it is a tool for social cohesion, equality, and territorial rooting."

These findings underscore Spain's complex economic landscape — while overall growth continues, substantial efforts remain essential to bridge inequality gaps and support sustainable, inclusive economic development across all social strata and regions.