Spain’s Economic Growth and the Persistent Challenge of Poverty

Spain is experiencing economic growth, but a significant portion of its population continues to face poverty and social exclusion. This article examines the current economic landscape in Spain, the progress made in reducing unemployment and increasing income, and the ongoing efforts to address social justice issues.

Economic Growth and Job Creation

As of early 2026, Spain leads economic growth within the European Economic Community, with a reported growth rate of 2.9%. This growth is accompanied by positive trends in the labor market. Data from 2025 indicate the creation of over 600,000 jobs, bringing the unemployment rate down to 9.6%, the lowest level in the past 17 years.

Income and Poverty Levels

The average income per person in Spain has seen a slight increase, rising to €15,620 per year in 2025, compared to €14,807 in 2024. The percentage of the population at risk of poverty or social exclusion has also decreased marginally, from 19.7% to 19.5% in 2025. However, despite these improvements, 9,641,355 people in Spain still live in poverty.

The Role of the Minimum Wage

Increases in the minimum wage (SMI) have contributed to the reduction in poverty rates. However, the FeSMC-UGT continues to advocate for a further increase to 60% of the average salary, which would equate to €1,444 per month, to ensure a truly dignified wage for workers.

Social Justice: Beyond Economic Indicators

Social justice encompasses more than just economic indicators. It includes ensuring access to essential goods and services, such as affordable housing, education, healthcare, and equal opportunities for all citizens, regardless of their background or circumstances.

Key Pillars for Achieving Social Justice

The UGT proposes several key pillars for advancing social justice in Spain:

• Defense of Human Rights: Strengthening the protection of human rights and democratic values in a context of weakening multilateralism.
• Strengthening Public Services: Demanding progressive taxation to fund and improve quality public services and the working conditions of those who provide them.
• Social Dialogue and Collective Bargaining: Promoting social dialogue and collective bargaining to achieve full employment and guarantee decent work with fair wages and reduced working hours.
• Strengthening Social Protection Systems: Reinforcing pension systems, unemployment benefits, and other social safety nets.
• Transformative Public Policies: Implementing policies that guarantee access to rights such as housing and control the rising prices of essential goods.
• Sustainable Production Model: Investing in diverse sectors to create a sustainable, fair, and equitable labor market.
• Gender Equality and Non-Discrimination: Achieving real gender equality and eliminating all forms of discrimination.

Moving Beyond GDP

There is a growing call to move beyond using Gross Domestic Product (GDP) as the sole measure of a society’s wealth. Instead, a focus on sustainable development, incorporating parameters of social justice, economic equity, and environmental respect, is needed to accurately assess a country’s progress.