Spain to legalise 500,000 migrants as its economy thrives on foreign labour
Spain is set to legalise around 500,000 undocumented migrants through a royal decree. The move comes as the country's economy grows steadily, driven in part by foreign workers. Meanwhile, Austria and Germany are tightening welfare rules to push migrants toward faster labour market integration.
Spain's minority government has proposed a sweeping regularisation plan for long-term undocumented migrants. Those who fail to qualify this time can still expect future legalisation if they remain law-abiding. The policy reflects Spain's relaxed approach to asylum migration, particularly from South America, where cultural and linguistic ties ease integration.
Over 40% of the 500,000 migrants targeted for legalisation come from Venezuela, Bolivia, and Peru. Five years ago, their share stood at around 30%, but economic and political crises—especially in Venezuela—have driven up numbers. Many arrived as asylum seekers but now fill critical roles in tourism, construction, and agriculture, where foreign-born workers make up over half the workforce in some sectors.
Spain's economy has grown by 2.5 to 3.5 percent annually since 2023, a boom partly credited to migrant labour. The country's model contrasts sharply with Austria and Germany, where welfare reforms now emphasise 'demanding and supporting'—linking benefits more tightly to employment. In Austria, most foreign hospitality workers arrive as regular EU labour migrants, while Spain's sector relies heavily on former asylum seekers.
Experts argue that successful migration policies depend on active management and well-designed incentives. When asylum channels bring culturally compatible groups with strong work ambitions, host societies can see clear economic gains. But the design of welfare systems remains crucial, as seen in the differing approaches across Europe.
Spain's regularisation plan will grant legal status to half a million migrants, many of whom already work in key industries. The policy builds on a period of strong economic growth fuelled by foreign labour. Meanwhile, stricter welfare rules in Austria and Germany aim to speed up integration by tying support to employment.
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