Spain is not in the top 10 for salaries in the EU and is the fifth country where salaries have increased the least over the last decade.

According to the latest data from Eurostat, salaries in Spain have seen moderate growth over the past decade. Between 2013 and 2023, salaries of Spanish workers increased by 22%a figure which, although positive, is significantly lower than the European Union (EU) average, which recorded an increase of 30%.

In absolute terms, The average salary in Spain reaches 32,587 euros in 2023, an amount lower than the 37,863 euros of the community average and very far from the 50,998 euros in Germany.

This more contained increase in wages in Spain is part of a trend of relatively slow wage growth. Actually, Spain is the fifth EU country where wages have increased the least over the last ten years.

This situation contrasts significantly with developments in countries like Germany, where profits increased by more than 35% during the same period.

Productivity is a key factor in understanding these differences in wage developments. In general, The higher the productivity, the higher the income.since this factor reflects the ability of an economy to efficiently generate goods and services. However, Spain presents a worrying trend: between 2013 and 2023, productivity fell by 6.4%according to the latest data from the European Statistical Office.

This reduction is particularly significant compared to Germany, where productivity increased by 31.9% in the same period, which helped to support the rise in wages.

France and Italy, countries often compared to Spain in economic terms, also have different wage and productivity models. In the French country, salaries increased by 21.3% over the last decade, a figure similar to that of Spain, although with a higher absolute level, standing at 42,662 euros per year in 2023.

For his part, Italy shows even lower wage growthby only 15%, which corresponds to an average salary of 32,749 euros. In terms of productivity, both countries also surpass Spain, although without reaching Germany’s figures.

He stagnation of productivity In Spain, this is one of the main obstacles to improving salary conditions. Productivity not only allows companies to be more competitive, but also directly influences the ability to pay workers.

In this sense, the Spanish labor market presents structural deficiencies which, far from stimulating productivity, weaken it. THE high temporality —which began to be fought following the last labor reform—, the sectoral differences and a low investment in innovation These are some of the factors that limit the country’s productive progress.

On the other hand, the context of inflation and energy crisis in recent years, has had an uneven impact on EU countries, also affecting the purchasing power of workers. If Germany was able to better protect the real value of wages thanks to its high level of productivity, Spain struggled to do the sameincreasing pressure on workers and their families.

In addition to the comparison with the EU average, it is worth noting the difference between the Eurozone and Spain in terms of salaries. In 2023, the average salary in the eurozone was 41,848 euros, well above the 32,587 euros in Spain. This gap reflects not only a disparity in the level of pay, but also in the economic capacity of each country to maintain higher wage levels.

And that’s it Lack of convergence with the Eurozone and with countries like Germany remains an ongoing challenge for the Spanish economy.

SO, Spain faces an unappetizing cocktail of stagnant average wages and productivitya situation that makes it difficult to improve working conditions in the country. The EU’s fourth-largest economy still needs to undertake structural reforms to boost productivity, because without an increase in efficiency it will be impossible to gain the momentum needed to raise wages and improve workers’ quality of life.