Spain's Labor Inspection Uncovers Over 92,600 Undeclared Jobs in 2024, Highlighting Persistent Underground Economy Issues
Spain's Labor Inspection uncovered over 92,600 undeclared jobs in 2024, predominantly in hospitality, exposing ongoing labor market challenges in the underground economy.
- • 92,689 undeclared jobs detected in 2024, mostly in hospitality
- • 130,416 labor law violations recorded, a 2.5% increase from 2023
- • 876,700 workers affected by violations, down from over one million
- • Fines imposed reached 541 million euros, up 3% from the previous year
Key details
In 2024, Spain's Labor Inspection (Inspección de Trabajo) revealed 92,689 undeclared jobs within the underground economy, according to the agency's annual report. This discovery sheds light on ongoing labor violations affecting hundreds of thousands of workers and representing a significant challenge for the Spanish labor market and economy.
The majority of these undeclared jobs were concentrated in the hospitality sector, which had the highest incidence of unregistered employment. This was followed by other service industries and commerce. The classifications of violations included workers not registered with Social Security, foreign nationals working without permits, employees working more hours than reported, and misclassification of workers as interns or self-employed.
Overall, the Labor Inspection detected 130,416 breaches of labor legislation in 2024, marking a 2.5% rise compared to the previous year. These violations impacted 876,700 workers, a reduction from over one million affected the year before, indicating some progress amid persistent challenges.
Monetary penalties levied by the agency totaled 541 million euros, reflecting a 3% increase from 2023. This increased fine total underscores efforts to enforce labor laws and discourage non-compliance within sectors prone to exploitation.
These findings emerge amid broader economic strains facing Spain, including a public administration deficit of 32.8 billion euros reported for the first half of 2025. While this fiscal topic involves separate government ministries, the Labor Inspection's enforcement initiatives remain critical to combating informal employment and protecting workers' rights.
The persistent presence of undeclared employment, especially in hospitality, indicates ongoing vulnerabilities in Spain's labor market. The Labor Inspection’s data highlights the agency's vital role in uncovering hidden economic activity and enforcing labor standards despite the complexities involved.
The continued discovery of infractions and imposition of fines drive home the message that undeclared employment remains a serious concern with wide-reaching impacts on workers’ protections, government social security funds, and the overall economy of Spain.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.