Innovation and Immigration Drive Solutions to Labor Shortages in Spain's Rural Primary Sector

Spain's rural primary sector, including agriculture, livestock, and fishing, remains economically vital, contributing 2.7% to national GDP, with its broader impact amplified through related industries like food transportation and distribution, which together exceed 9% of GDP. Despite this significance, the sector faces acute challenges from labor shortages and an aging workforce, with 70% of its 747,000 workers being over 40 years old.

Addressing these concerns, the Spanish government has announced plans to regularize approximately 500,000 undocumented immigrants, a move expected to stabilize employment for about 200,000 migrants currently working in agriculture. José Luis Miguel from COAG noted that relying on immigrant labor and technological innovation are key strategies to revitalizing the sector.

Technological advancements are also central to efforts to modernize rural Spain and attract younger talent. The University of Córdoba has launched a dedicated chair on artificial intelligence in agriculture, promoting a digital ecosystem incorporating data spaces and predictive analytics. This initiative benefits from a €2 million public-private investment and aims to boost productivity and value addition in farming.

Beyond agriculture, hunting represents an important economic contributor in rural areas, generating significant revenue during seasons often overlooked by policymakers. Meanwhile, e-commerce platforms are increasingly facilitating rural development by enabling local producers and residents to access goods with reduced travel and environmental impact. Initiatives such as Amazon Hub Delivery and Mejor de Pueblo support rural businesses in establishing digital presences.

Demographically, Spain experienced its first birth rate increase since 2014 in 2025, rising 1% to 321,164 births, attributed partly to expanded parental-leave benefits and delayed pregnancies. Nonetheless, deaths still outnumber births by over 122,000, underscoring ongoing demographic pressures. Prime Minister Pedro Sánchez emphasized the importance of immigration in sustaining the workforce amid projections of a 3 million decline in the working-age population over the next decade.

Experts caution that without broader structural reforms—including affordable housing, accessible childcare, and stable employment—the modest birth rate improvement may not persist. Immigration and innovation together form the backbone of Spain's strategy to surmount labor and demographic challenges in rural primary sectors.