Half of Spanish adults rely on state: 16 million monthly payrolls

Half of Spanish adults already depend on the public sector: 16 million monthly payrolls

The employment rate among the active population does not reach 51%, according to INE (Spain's National Statistics Institute) for Q1 2023. However, 50% of those over 18 already receive aid, a pension or a public salary. The numbers don't add up: the State pays 16 million salaries a month, but the productive base is shrinking.

Public employment and its figures

According to data collected by various sources, the number of public employees has grown steadily, while private employment fails to absorb the active population. Unemployed people over 45 now account for 57% of the total, the highest level in history, according to El Economista. In addition, direct public payroll must be added to the millions of workers in private companies who work for the Administration through subcontracting, a hole difficult to quantify but which increases real dependence on the State.

The cost of pensions and debt

The pension system is another pillar of this dependence. The average pension for new retirees approaches €1,600, according to El Mundo, and there are retirees receiving €4,500 annually without having contributed, according to El Economista. Meanwhile, Spanish public debt has reached €1.5 trillion, after adding €75,267 million in 2022 alone. The State spends more than it earns, and the gap is covered with more debt.

Is the model sustainable?

Some argue that the public sector simply fills the gap left by a private sector unable to generate enough jobs. Others point out that State growth is unsustainable in the long term and that the only way out is the privatization of services and pensions. While the ECB keeps interest rates high, the cost of debt skyrockets. The question is not whether the model will hold, but when the adjustment will come.

With these data, the picture is clear: more and more Spaniards live off the State, and fewer produce what is consumed. The chain tightens, and the weakest link will be future generations.

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