Economy
After almost 15 years of above average economic growth, Spain’s economy entered recession in 2008 and has yet to escape the financial downturn. The World Bank (2012) ranked Spain’s nearly US$1.5 trillion gross domestic product (GDP) thirteenth out of 190 countries studied. The Legatum Institute ranked Spain’s economy forty-fourth out of 142 countries on its Economy Sub-Index (2013).
The service sector dominates the Spanish economy, accounting for 73 percent of GDP. The industrial sector, the second-largest share of the Spanish economy, is dominated by the production of textiles and apparel, metal, chemicals and medical equipment. Spain also has maintained its exports performance with products such as machinery, motor vehicles, foodstuffs, pharmaceuticals and medicine. In 2012, exports were nearly US$304 billion and imports almost US$323 billion. The country’s major export partners are France, Germany, Italy, Portugal and the United Kingdom.
The objective of the Spanish government this year is to implement rapid labor market reforms and complete the restructuring of the financial sector in an effort to create employment. GDP contracted 1.4 percent in 2012 and continues in negative territory. The unemployment rate has reached a record high of 27 percent with little relief in sight. The country’s only good economic news is on the inflation front, which is about 1.7 percent.
The Eurozone’s fourth largest economy is still suffering from a recession. According to the Spanish National Institute of Statistics, the unemployment rate has climbed to record high of 27 percent, which will make it difficult for expats to find employment in the country. To work in Spain, make sure you get a six-month contract so you can have the same rights as a Spanish employee. If you are not fluent in Spanish, finding a job will be difficult, although English-speakers will have more opportunities in the tourism and real estate sectors. If you speak Spanish, biotechnology, pharmaceuticals, financial services and insurance are the job sectors with the strongest opportunities.
Spain’s major cities offer the best job opportunities, especially Madrid and Barcelona. Job search strategies you can use in Spain are similar to the U.S. Industry associations are an excellent way to find out about international opportunities in your field. Check job listings in local newspapers and Craigslist for individual cities in Spain (our link below includes Craigslist links for 11 major cities). Be sure to send unsolicited applications to targeted employers and contact temporary work or staffing agencies online or onsite. Most importantly, check out local online forums and bulletin boards in the area you have chosen. Locals can be a great source of opportunities.
To get you started, here is a list of websites that may help you in your job search:
Think Spain
Monster Spain
Great Place to Work’s webpage
Despite still suffering from a recession, Spain continues to generate new business start-ups. Small–to medium-size businesses represent 99 percent of all businesses in Spain. The World Bank (2012) ranked the country forty-fourth out of 185 countries on its Ease of Doing Business Index, but just one hundred thirty-sixth on its Ease of Starting a Business Index. Spain’s best rankings were twentieth in resolving insolvency, thirty-fourth in paying taxes, thirty-eighth in dealing with construction permits and thirty-ninth in trading across borders. Spain also ranked twenty-ninth out of 142 countries on the Legatum Institute’s Entrepreneurship and Opportunity Sub-Index (2013).
For an excellent, detailed overview of business opportunities in Spain, read the Country Commercial Guide for Spain, which is prepared annually at U.S. embassies through the combined efforts of several U.S. government agencies. The guide presents a comprehensive analysis of Spain’s commercial environment from economic, political and market analyses.
To help you start a business in Spain, the World Bank offers this step-by-step Spain start-up process.. It also provides a more detailed report on doing business in Spain.
For more information about grants and financial incentives for businesses and other information helpful for entrepreneurs wishing to start a business in Spain, visit this Spanish government website. There are government-subsidized loans available throughout Spain for entrepreneurs who want to develop businesses, especially in the technology and tourism sectors.