A recent study from Fedea highlights the significant role that foreign workers have played in Spain's economic growth as the country grapples with the challenges of an aging population. Over the past two decades, the influx of migrants has rejuvenated the labor force and increased employment and participation rates, which has countered the adverse effects of demographic aging on the labor market and overall economic growth. Without immigration, the decrease in the working-age population would have been far more severe, with a projected decline more than double what has actually been observed from 2000 to 2019.

The research underscores the importance of immigration as a demographic and labor market booster, indicating that, without it, Spain would have experienced a more significant reduction in productivity. The so-called demographic dividend—a crucial concept in assessing a country's growth potential—would have diminished much more drastically, with a decrease of 7.8 percentage points rather than the 4.6 points that occurred thanks to the contributions of immigrant workers. This demographic change has allowed Spain to sustain its economic momentum amid growing concerns about its aging population.

However, the study also warns that while immigration has played a key role in mitigating the challenges posed by demographic changes, it will not be enough on its own. The report calls for necessary improvements in productivity to ensure that the benefits of a youthful workforce translate into sustainable economic growth. This suggests that immigration policy, labor market reforms, and productivity drives are essential for addressing the economic implications of population aging effectively.