Spain is set to implement significant labor and migration reforms aimed at boosting employment and productivity.

The government has submitted an ambitious adjustment plan to the European Commission, projecting the creation of over 1.5 million jobs by 2026, reaching nearly 23 million employed individuals.

This plan includes reducing the average workweek while maintaining productivity growth.

The labor market has already seen a 2.6% annual growth since the 2022 labor reform, supported by economic recovery and European funds.

In parallel, Spain is revising its immigration regulations to ease the process for the 6.5 million immigrants in the country and attract more skilled foreign workers.

The new rules will streamline residency and work permit processes, potentially regularizing thousands of immigrants.

These reforms are expected to enhance Spain's economic growth, with projections of a 2.7% GDP increase this year, driven by improved employment rates and increased tax revenues.