Only 29% of Colombians in Spain pay into social security
Of around one million Colombians in Spain, only 291,371 are registered with social security: 29%. The INE data on foreign employment contradict the optimistic narrative.
English · Original discussion in Spanish · Published
Only 29% of Colombians in Spain pay into social security: INE data cool the official narrative
The INE (Spain's statistics institute) data are stubborn. Of the nearly one million Colombians living in Spain, barely 291,371 are registered with social security. That works out at a contribution rate of 29%, far below the 43.5% of job creation attributed to foreigners as a whole. The figure raises a question: are we looking at a statistical mirage, or does immigration not drive the economy as much as is repeatedly claimed?
Record foreign employment, but with caveats
In May the INE recorded a historic high in foreign social security registrations: 3,359,548 contributors, up 3.43% on the previous month and 9.4% year on year. The main nationalities are Segarro (420,939), Romania (355,087), Colombia (291,371), Venezuela (231,635) and Italy (220,474). Together they account for 15% of all contributors, yet according to official sources they have generated 43.5% of the jobs created since the labour reform. However, the gap between residents and contributors is huge for Colombians: of an estimated one million, only three in ten contribute.
Regularisation, the informal economy and the underlying debate
Part of the explanation lies in pending regularisation processes. Many Colombians arrive with qualifications that are never recognised and end up in informal jobs. Those who defend immigration argue that once regularised, the contribution rate will rise. Sceptics reply that the informal economy is chronic and that family reunification brings in elderly dependants who will never contribute. The unemployment rate among those regularised remains higher than that of Spaniards, fuelling doubts about whether the pension system can be sustained under this model.
Support or cost?
The 29% contribution rate among Colombians does not invalidate the record in foreign social security registrations, but it does demand a more careful analysis. While some see a cushion for pensions, others calculate that every new non-contributing resident is a net cost. The question that remains: how many of those who arrive will actually end up contributing?
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The INE (Spain's statistics institute) data are stubborn. Of the nearly one million Colombians living in Spain, barely 291,371 are registered with social security. That works out at a contribution rate of 29%, far below the 43.5% of job creation attributed to foreigners as a whole. The figure raises a question: are we looking at a statistical mirage, or does immigration not drive the economy as much as is repeatedly claimed?
Record foreign employment, but with caveats
In May the INE recorded a historic high in foreign social security registrations: 3,359,548 contributors, up 3.43% on the previous month and 9.4% year on year. The main nationalities are Segarro (420,939), Romania (355,087), Colombia (291,371), Venezuela (231,635) and Italy (220,474). Together they account for 15% of all contributors, yet according to official sources they have generated 43.5% of the jobs created since the labour reform. However, the gap between residents and contributors is huge for Colombians: of an estimated one million, only three in ten contribute.
Regularisation, the informal economy and the underlying debate
Part of the explanation lies in pending regularisation processes. Many Colombians arrive with qualifications that are never recognised and end up in informal jobs. Those who defend immigration argue that once regularised, the contribution rate will rise. Sceptics reply that the informal economy is chronic and that family reunification brings in elderly dependants who will never contribute. The unemployment rate among those regularised remains higher than that of Spaniards, fuelling doubts about whether the pension system can be sustained under this model.
Support or cost?
The 29% contribution rate among Colombians does not invalidate the record in foreign social security registrations, but it does demand a more careful analysis. While some see a cushion for pensions, others calculate that every new non-contributing resident is a net cost. The question that remains: how many of those who arrive will actually end up contributing?
Most shared
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (12 replies).
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