Spain is moving forward with an ambitious plan to grant legal status to more than one million undocumented migrants by 2027 as part of its effort to tackle labour shortages and support economic growth amid a rapidly aging population.
Spain’s Immigration Reform: A Key to Economic Stability
A new reform that took effect in May 2025 aims to legalise around 300,000 undocumented migrants each year for the next three years. Additionally, a draft bill under discussion in Parliament proposes to regularise 470,000 migrants who arrived in Spain before December 2024.
The initiative is designed to strengthen the workforce, sustain the pension system, and address demographic decline. Migrants currently represent 13.5% of Spain’s workforce and accounted for 40% of new jobs in 2024, particularly in key sectors such as construction, agriculture, and healthcare.
Labour Shortage: A Growing Challenge Across Europe
Spain’s approach contrasts with much of the EU’s focus on deportation and border control. The European Union loses about one million working-age people annually, and foreign workers filled two-thirds of new jobs between 2019 and 2023.
According to Claudia Finotelli, professor of sociology at Complutense University of Madrid, immigration is now “central to Spain’s labour market and demographic future.” Between 2022 and 2024, 5.2 million jobs were created in Spain, and 75% were filled by foreigners or dual nationals.
The Human Side of Spain’s Migration Policy
Many migrants, particularly from Latin America, see Spain as a safer and more accessible alternative to the United States.
One example is Lorena Flechas, a 31-year-old Colombian who arrived with her family to seek safety and stability. Supported by the association AESCO, she is now in the process of obtaining residence and work permits.
According to AESCO President Andrés Gaviria, it currently takes two to seven years for undocumented migrants to obtain full legal documents. The new reform could significantly shorten this period, allowing more people to leave the informal economy and contribute legally to the workforce.
Economic Impact and European Context
Spain’s 2005 regularisation programme generated an estimated €4,000 in social security contributions per migrant, while over one million people have gained legal status since 2009.
Similar measures have also been introduced in Portugal, Italy, and Germany, reflecting a broader European shift toward using immigration as a tool to address demographic and economic challenges.
A recent report from the European Central Bank (ECB) highlighted that migrants contributed to 50% of job creationin Europe in recent years. As baby boomers approach retirement, the ECB warned that immigration will remain essential to sustain growth and stability across the continent.