Spain's economy has seen significant improvement since the COVID-19 pandemic, contrasting with declines in other major European economies. Over the past three years, Spain has created one out of every three jobs in the European Union, with disposable income rising rapidly and unemployment reaching its lowest levels in nearly two decades. The Spanish Socialist Workers' Party has maintained power during this period, largely attributed to progressive policies that include raising the minimum wage and welcoming a record number of immigrants.
The government implemented measures to address labor shortages by increasing legal immigration from Latin America while managing public sentiment regarding illegal immigration. This approach has resulted in over three million migrants entering Spain between 2021 and 2023, contributing to economic growth and job creation.
Despite these successes, Spain faces a significant housing crisis, with home prices rising sharply due to increased demand from immigrants and a lack of new construction. This issue has become a top concern for voters and poses a risk to the political stability achieved by the current government. The far-right party Vox has begun to gain traction by linking the housing crisis to immigration, suggesting that the government’s policies may be contributing to the problem. As the country prepares for future elections, the housing shortage remains a critical challenge that could impact the political landscape.