Spain’s Open Immigration Policy Drives Record Labor Market Growth in 2026

Spain has taken a bold and unique approach to immigration in 2026 by implementing an extraordinary regularization program for undocumented immigrants who have resided in the country for at least five months and have no criminal record. This measure, enacted via royal decree and backed by approximately 700,000 civil society signatures, contrasts sharply with tightening immigration policies across much of the developed world. The policy aims to bring over half a million undocumented immigrants into formal employment, particularly benefiting sectors like construction and hospitality that face labor shortages.

According to official figures from the Ministry of Inclusion, Social Security, and Migration, Spain’s labor market continues to reflect the positive impact of this inclusive immigration approach. The total number of Social Security affiliates rose by nearly 478,000 over the past 12 months to reach an unprecedented 21,573,632, with nearly 2.1 million more affiliates compared to the period before the latest labor reform. Foreign workers constitute 14.1% of the total workforce, numbering 3,038,158.

This growth follows an expected seasonal dip in January, which saw a loss of 270,000 jobs, but when adjusted for seasonal factors, the figures show a historic record for January employment. The temporary employment rate dropped significantly to 11.6%, down from 29.4% in 2019, especially improving among workers aged 55 and older. Women's participation in the workforce reached its highest January level in 18 years, demonstrating notable gender progress.

Economically, Spain has solidified its position as the 12th largest economy worldwide, with GDP exceeding 000 billion, driven in part by its immigrant labor force. While some critics warn that Spain's structural unemployment, just under 10%, may challenge the absorption of large immigrant populations, experts, including Minister Elma Saiz, emphasize that this inclusive policy enhances public revenues and pension sustainability.

The positive public perception of immigration, especially towards Latin American immigrants who make up nearly half of the immigrant population, facilitates better social integration compared to other nations. This evolving labor market and immigration policy underscores Spain’s ongoing commitment to an open and growth-oriented immigration stance, setting it apart in Europe.