In 2023, 17.08% of employees in Spain had a temporary contract. However, this percentage skyrockets among younger workers. 61.7% of employees between 16 and 19 years old benefited from a temporary contract, followed by 46.4% among those between 20 and 24 years old and 27.6% among those between 25 and 29 years old.s, according to the report by the consulting firm Freemarket Corporate Intelligence, entitled “Spain is not a country for young people”supported by figures from the OECD, the Bank of Spain, the INE and organizations that measure the rate of risk of poverty and social exclusion, the rate of severe material and social deprivation or the Report on happiness in the world 2024. In addition to the predominance of one part – part-time employment, young people also face a greater number of temporary jobs, which, according to the government, is a clear example of job insecurity.
The consequences of this situation are not limited only to job stability. Young workers aged 16 to 29 earn wages 35% below average and their wage growth over their working lives is slower than that of previous generations. If the generation born in 1955 reached the average social security contribution base at age 27, those born in 1985 did not reach it at age 34. This indicates that Spanish youth take longer to reach the average salary level of any profession.
Added to this scenario are difficulties in accessing the job market and a high unemployment rate. Young people represent a much larger proportion of the unemployed than of the employed, reflecting the obstacles they face in finding work. Wage insecurity also results in a drop in family income. Households whose breadwinner is aged 16 to 29 have an income per consumption unit of around 16,000 euros per year, or 15% less than the national average, and this drop is more pronounced in households whose the breadwinner does not have higher education, where the annual income It falls to 11,000 euros, or 40% below the average.
Lower demographic weight
The weakening of the situation of young people does not only occur in the economic field, but also in the political field. Its demographic weight has decreased considerably, from 21.11% of the population in 1980 to 14.81% in 2023. At the same time, the share of the population aged over 65 has increased considerably, from 11.05% in 1980 to 20.61% today. This aging of the population reduces the ability of young people to influence public policies, since the interests of older people predominate in an increasingly aging society.
This demographic decline is also reflected in the low birth rate. In 2023, only 322,075 children will be born in Spain (1.16 children per woman), a figure that contrasts with the 688,711 births (2.88 children per woman) recorded 50 years ago. This drop in births has reduced the share of the population aged 0 to 29 from 49.1% in 1980 to 29.5% in 2023, consolidating unprecedented aging.
Young people are not happy
For the first time, the report analyzes happiness at different stages of life and concludes that the life satisfaction of young people aged 15 to 24 has fallen sharply since the pandemic, particularly in North America, where older people are now more happy. Spain, which was ranked 24th in 2021, fell to 36th place in 2024. In generational terms, people born before 1980 are happier than millennials and Generation Z. In Spain, those under 30 occupy 55th place in the happiness rankingswhile those over 60 rank 29th.
The financial situation of young people is also worrying. According to the Bank of Spain’s Family Financial Survey, younger households suffered a notable decline in income and net worth, with a 37.5% drop in homeownership between 2011 and 2022. This reflects significant impoverishment in a sector which considers housing as its main element. active.
Indicators of risk of poverty and social exclusion are also alarming. In 2023, 31.2% of young people aged 16 to 29 were at risk of poverty and 11.5% faced severe material and social deprivation. This deterioration is not only temporary, but structural, the result of the degradation of public education and an inefficient and anti-youth labor market.
If this trend continues, Spain could face stagnation in the quality of life of new generationswho are likely to emigrate in search of better job opportunities and better salaries. This could lead to an impoverishment of the middle class and increased social and political instability.
The Freemarket Corporate Intelligence report highlights that the decline of the younger generation is not temporary, but structural, caused mainly by the deterioration of public education and an inefficient, anti-youth job market. If this trend is not corrected, there could be stagnation and decline in living standards, social polarization between a majority with low productivity and a minority with high education and high income. In addition, The exodus of highly qualified young people abroad reduces human capital and limits the country’s economic development.
Furthermore, this study suggests a worrying future for the traditional middle class in Spain, which could face impoverishment and increased social and political instability due to the lack of opportunities for young people. The poor functioning of the public education system is one of the main factors hindering the progress of young peopleThis is evidenced by the secondary school dropout rate and the high percentage of “NEETS” (young people who neither study nor work). Spain occupies one of the worst positions in these indicators within the European Union, which highlights the urgency of solving this problem to guarantee social cohesion and future prosperity.
The quality of teaching: an obstacle to the employment of university students
According to the latest Eurostat data, the university courses chosen by Spanish students do not differ significantly from those followed by their eurozone counterparts. This similarity in educational preferences suggests that it is not career choice that explains the notable differences in unemployment rates between Spanish graduates and those from the rest of the European Union (EU). However, labor market figures reveal a worrying reality: Spanish graduates face greater difficulties accessing skilled jobs and have a higher unemployment rate than the EU-27 average.
What is behind this situation? Experts highlight a key factor: the quality of higher education in Spain. Although the Spanish university system produces a considerable number of graduates, their integration into the labor market, particularly in highly qualified jobs, is lower than in other European countries. This suggests that University education in Spain fails to prepare students to compete effectively in an increasingly demanding and globalized work environment.
The education quality deficit is reflected not only in unemployment rates, but also in the proportion of graduates who succeed in occupying highly qualified positions. In many cases, Spanish graduates find themselves in jobs that do not require the level of training they have achieved, which generates overqualification and limits their professional development. On the other hand, in other eurozone countries, such as Germany or the Netherlands, graduates have more chances of accessing jobs corresponding to their level of education, which improves their employment situation. employment and reduces unemployment rates.
