València's Economic Growth Shadowed by Talent Retention Struggles
Despite strong economic growth and investment, València faces significant challenges retaining qualified talent due to salary gaps, employment mismatches, and rising living costs.
- • València shows promising economic growth and attracts investment.
- • High unemployment persists alongside a shortage of qualified technical and digital talent.
- • Salaries in València are about €200 below the national average, affecting competitiveness.
- • Recommendations include improving employer branding, work flexibility, and education-labor market alignment.
Key details
València and its metropolitan area are experiencing robust economic growth and attracting substantial industrial investment, buoyed by demographic expansion and a competitive living cost relative to other major Spanish regions. According to a recent report by the CEV, the València City Council, and Key Executive, the region is paradoxically struggling to retain qualified talent despite these positive indicators.
The report highlights a significant mismatch in the labor market: unemployment remains elevated, especially for technical and digital roles, while there is a shortage of qualified candidates. The Comunitat Valenciana ranks below the national average in talent retention and creation, largely due to salary levels approximately €200 below the national average and limited work flexibility compared to other regions. Furthermore, professional development opportunities are scarce, and rising living costs, particularly housing expenses, erode València's previously competitive advantages.
To address these challenges, the report recommends strategic interventions such as boosting employer branding, promoting a “Valencia Talent Hub,” and enhancing work flexibility, especially within the tech sector. It stresses the importance of aligning educational outcomes with labor market demands, strengthening the collaboration between universities and businesses, and improving technological competencies.
València's labor market is at a critical juncture as it forecasts optimistic GDP growth of 2.4% by 2026, yet must urgently bridge the gap between economic potential and talent retention to sustain its growth trajectory.
This article was translated and synthesized from Spanish sources, providing English-speaking readers with local perspectives.
