Technological Employment Growth Slows Down in Spain Amid Persistent Economic Challenges

Spain's technological employment sector, after years of robust expansion, has experienced a notable slowdown as of 2025, according to recent analyses highlighting structural issues in the country's economy. Despite a significant increase in tech-related jobs over the past five years—from under 800,000 to more than a million—growth momentum has faltered. A report from the General Union of Workers (UGT), authored by José Varela, reveals a reduction of 50,000 tech jobs between the third quarters of 2024 and 2025, particularly affecting the architecture and engineering sector with a loss of 26,000 jobs, and telecommunications with a drop of 20,000 positions.

This deceleration contradicts earlier trends and underscores broader economic challenges. Spain continues to grapple with high unemployment and low labor force participation rates overall. Technology sector unemployment is especially concerning, with rates reaching 9.9%, the highest in the European Union and well above the EU average of 6.5%. Salary disparities further exacerbate the issue: tech workers in Spain earn about 38% less than their European counterparts, and while tech salaries have increased by 34% from 2019 to 2023, other EU countries have seen much higher salary growth.

Employment patterns also show a decline in companies hiring tech professionals, with a 16% drop since 2018, stalling Spain's rise in the European tech employment ranking; it remains in 20th place despite doubling its number of tech specialists since 2015. Furthermore, the opportunity for teleworking in the tech sector is limited—17% of tech companies do not offer remote work options, contributing to relatively low telecommuting rates among digital professionals.

Experts stress the need for Spain to pivot towards high-value-added sectors to revitalize its economic prospects and labor markets. The data suggests that while the country has made progress in expanding tech employment, enhanced support and structural reforms are essential to sustain growth and competitiveness within the European landscape.