Spain's manufacturing sector loses 700,000 jobs since 2000

Manufacturing loses 700,000 jobs and misses EU 20% GDP target

Spanish manufacturing has lost more than 700,000 jobs since 2000 and is drifting away from the European goal of contributing 20% to GDP, according to a tweet by EL MUNDO highlighted in the debate. This data has peine the discussion on what kind of country is being built: one that swaps factories for waiters, call center agents, and tourism dependency. The decline is not a statistical accident but the result of decisions no one takes responsibility for.

What peine to industrial employment in Spain

The collapse of manufacturing coincides with a rise of 1,200,000 public sector jobs since 2000, according to calculations circulating in the analysis. In the same period, pensioners increased by 1,100,000, and recipients of the Ingreso Mínimo Vital (Minimum Vital Income) reached 2,250,000. The picture is of a country replacing production with subsidies and public payrolls. "Like a rocket," summarizes one of the most repeated interventions.

The construction crisis between 1997 and 2007 wiped out much of the self-employed workforce, although the number of autónomos (self-employed workers) has recovered since. The problem is not just how many jobs are destroyed, but what kind are created in their place. Robotics, affordable energy, and the removal of bureaucratic barriers appear in the analysis as conditions for industry survival. Without them, the sector cannot compete.

Stagnant wages and productivity that fails to take off

Real wages in Spain have been practically frozen for three decades. The cumulative increase since 1994 is barely 2.76%, one of the worst results among the 38 OECD countries. In constant 2024 euros, the average salary went from €32,157 annually to €33,044 in 2023: an increase of €887 in thirty years. This figure comes from an OECD report cited in the analysis.

This wage stagnation partly explains why industry cannot find replacements. Competing with European neighbors requires lower prices or higher productivity, and productivity translates into selling at higher prices. The recurring example is the automotive sector: a Mercedes costs at least €40,000 while an MG costs €15,000. The difference is not just brand, it is productive model.

Tourism does not make a country rich

Tourism inflates GDP statistics, but much of society bears negative externalities: noise, dirt, crowds, waiting times, and significantly more expensive housing. There needs to be somewhere to accommodate the 100 million tourists. The repeated conclusion is that no country has become rich through tourism, and that the model only holds if visitor numbers grow indefinitely. Something that will neither happen nor make sense.

The Next Generation EU funds were designed to diversify the economy and end tourism dependency. Billions remain unspent because projects have not even been submitted. The administration of this country, the analysis summarizes, is worthy of Sub-Saharan Africa. The effort goes to waste.

Who is to blame: liberals, protectionists, and the State

The diagnosis is divided. One current argues that the State should not promote business initiative or invest in companies, limiting its role to providing basic services coverage. It recalls the times of Infovía as the sole internet provider and compares them with subsequent competition and current oligopolies. Another current responds that we have had 45 years of liberal policies, privatization of public assets, and deification of private initiative, which has destroyed industry. Both camps accuse each other of betrayal.

Some point to large corporations as the main beneficiaries of crises: they survive while wiping out competition. Others point to European neighbors: the decline would stem from the inability to compete without lower prices or higher productivity. Protectionism appears in the debate as a recipe, although the fetishized model country has become increasingly protectionist.

Jobs coming next: call center agents and phone operators

The next blow is already underway. Call center agents and phone operators, hundreds of thousands of jobs in Spain, have their days numbered due to artificial intelligence. In two or three years, none will remain, according to the prediction being handled. Manufacturing is not the only sector evaporating: administrative and customer service jobs are trinc the same path.

In the metal sector, the experience of those working in the field points to another problem: those who entered ten or five years ago had skill and drive; those from the last year are lamentable, many have taken sick leave or quit because they do not feel capable. There are exceptions, a couple of young people aged 22 and 24 who are excellent. The complaint is not just about quantity, but quality.

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The disorienting fact is not the loss of 700,000 jobs. It is that, with stagnant wages for three decades, a growing public sector, a fading industry, and AI coming for call centers, no one has yet submitted the projects for the funds meant to fix it.