Spain's labor market is currently experiencing strong stagnation due to unemployment, job cuts, and a growing active population. The current low rate of job creation means that there is a significant mismatch between supply and demand in the labor market.

Spain's labor market is one of the most dynamic in Europe. Between 2014 and 2018, the economy created more than 2 million net jobs, just under 30% of all jobs created in the eurozone during that period. As a result, the unemployment rate has fallen, although it has not recovered all the ground lost during the crisis. 

Given the high level of unemployment and the social problems it brings with it, many argue that the labor market in Spain has a structural problem. The global economic crisis is the main cause of rising unemployment rates in almost all countries, but in Spain it has had a particularly pronounced impact, suggesting that the Spanish labor market is highly dependent on economic cycles. Although the number of job openings has fallen significantly, some sectors have weathered the crisis better than others.

The main characteristics of the Spanish labor market are:

1. The high unemployment rate. One of the highest in the European Union, but also in first place among globalized countries.

2. A very high youth unemployment rate, close to 60%. Many young people are looking for their first employment opportunity.

3. Most contracts are temporary.

4. High demographic concentration of vacancies and the areas with the highest unemployment. Madrid, Catalonia, and the Basque Country are the regions of Spain with the highest number of job offers.

5. The emergence of new forms of work, such as telecommuting.

6. A strong impetus for self-employment or freelance work.

7. Most job offers are in the service sector.

Labor market trends in Spain

Depending on the company and industry, some professions are more in demand than others. Working emigration to Spain has the following common features:

• Higher education or qualifications, especially technical, related to new technologies or more economic.
• Knowledge of languages, especially English. There is a growing demand for profiles in Chinese or Russian.
• A prerequisite in many jobs is work experience in the chosen field or general skills. 
• Mobility, in some cases international.
• Proficiency and knowledge of new technologies, especially those related to the Internet.

Foreign nationals wishing to engage in any professional or gainful employment activity, whether self-employed or salaried, will require a work visa to Spain, which can only be obtained at the Spanish Consulate in the country of residence. Previously, the employer - company or entrepreneur - had to apply for a residence and work permit through the competent regional body.

Individuals with a residence permit can skip all the steps described below. On the other hand, the same process cannot be carried out by those who are in Spain on a short-term tourist visa or illegally.

How to extend your work and residence visa in Spain

If you are interested in working abroad on a long-term basis, the process of extending your work and residency visa can be done from Spain, provided that it is done within the prescribed period, that is, within 60 days before the expiration of your visa. Work and residence visas can be extended up to three times. 

The initial permit is valid for one year, while the first and second extensions allow you to continue to perform any job or professional activity for an additional two years. The third extension entails the automatic granting of a permanent residence permit, which entitles you to enjoy the same working conditions as Spanish citizens.

To work in Spain, even if it is a work-from-home online, you must have a work and residence visa, which entitles you to work or perform a professional activity, as an employee or self-employed person, as well as to live in Spain.

Applying for work and residence visas in Spain

Foreign nationals intending to carry out any lucrative, working, or professional activity in Spain must meet the following requirements:

• Be over the age of sixteen, unless the work activity is on their account, in which case they must be over the age of eighteen. Have the appropriate permissions to live and work in Spain. This document must be requested by the employer offering the employment contract. This is a step before the foreign worker applies for a visa.
• Obtaining a work and residency visa after a residence and work permit has been issued. In this sense, a Spanish employer or entrepreneur wishing to hire a foreign worker in a highly specialized position that a worker from Spain or the EU cannot occupy can apply for a work and residence visa in Spain.
• The employer must apply for a residence and work permit as an employee by submitting a job offer to the Alien Affairs Offices located in the delegations' areas of employment. On the other hand, a foreign worker can apply for a work and residence visa in Spain when he/she plans to open a business or enterprise in Spain on his/her account or when he/she has a work abroad with a formal offer from a Spanish employer.

Visa for residence and work as a worker in Spain

Allows a foreigner over the age of sixteen to enter Spain to live and carry out work or professional activities as a worker (the applicant has an official offer of employment in Spain). To obtain this visa, the applicant must fill out and sign the relevant application form provided by the Spanish consulates.

Social Security in Spanish

Once the visa holder enters Spain, he/she can start working and be connected to the Spanish social security system. It is important to note that when first applying for a work and residence visa for employment, the authorities take into account the employment situation in the country, that is, that the foreign worker is not in a position that a worker from Spain or the EU can occupy.

In this sense, it is worth reading in detail about the real situation of the labor market in Spain. On the website of VW, you can buy a complete checklist for work and life in Spain with step-by-step recommendations and up-to-date advice. Also, for personal advice, use the legal services of our specialist on labor migration to Spain and other countries. 

Residence Permit and Work Visa for the Self-Employed

If you are an entrepreneur and want to implement work projects in Spain, you need a self-employed work visa. This visa allows foreign nationals over the age of 18 to engage in economic activities, as long as they meet the requirements.

Resident visas for investors, entrepreneurs, highly qualified professionals, researchers, and workers carrying out intra-corporate transfers.

It entitles one to reside in Spain for one year, except in the case of a resident visa for intra-corporate transferees, which will be valid for the duration of the transfer but may not exceed one year.

Requirements for obtaining a work permit

Each type of visa has its specific requirements, but here are the general ones you must meet to apply for a work permit in Spain:

• Not be an illegal resident in the country.
• Not be a citizen of an EU country, the European Economic Area, or Switzerland, or a family member of a citizen of one of these countries.
• Have a clean criminal record in Spain and in the countries where you have lived in recent years.
• Have a job offer registered with the Public Employment Service, if you are applying for a visa as a worker.
• Submit a contract signed by you and your employer if you are applying for a visa as an employee.
• Have the academic training and work experience necessary to carry out your occupation.
• Comply with applicable laws for starting and operating your project, if you are applying for a visa as a self-employed person.
• Proven professional experience to conduct your business, if you are applying for a self-employed visa.
• Proof that you have enough money to carry out your project, in case you are applying for a self-employed visa.
• Have the training and, if applicable, the professional qualifications required by law to carry out the professional activity.