THIRTY-FIVE percent of those employed in Spain are overqualified for their jobs leading to a national ‘brain-waste’ phenomenon.

Recent data from Eurostat found Spain had the highest overqualification rate in Europe in 2024, with people with tertiary education working jobs that do not require such a high level of education. 

With some of the highest numbers of university graduates in the EU, it seems Spain is wasting its talent. People are forced to accept jobs not in their field and are being severely underpaid. 

While education is encouraged and praised in Spain, Southern Denmark University business professor Maria Elo explained it doesn’t mean the labour market can ”accommodate all this talent.’

Spain has been leading this EU statistic for several years, highlighting a work market dominated by low-paying service-based jobs.

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More than 75% of Spain’s job market is made of service-based work, mainly in areas such as tourism, hospitality and sales. These are all professions that do not always require a university qualification. 

Because of this, if people want to climb the career ladder, they are forced to look for jobs elsewhere, outside of Spanish borders. Many people who choose to stay aspire to become a civil servant (funcionario) as it offers a stable and high income. 

Foreigners living in Spain are those who end up working a job they’re overqualified for most often, expat media company The Local reported. Furthermore, a 2023 Eurostat report noted that it’s more likely a foreigner’s formal qualifications will not be fully used in the labour market compared to a local citizens. Language barriers can contribute to this.

Spanish women workers are the most overqualified in all of Europe. Last year, 35.8% of female workers were overqualified, while the European Union average was 22.2%.

Immigrants from non-EU countries, trained in professions such as medicine, nursing, dentistry and law, also have to apply for their qualifications to be recognised by the Ministry of Education. This process can take up to two years, meaning immigrants are forced to take on jobs they’re overqualified for.

Stagnant wages

Wages in Spain remain notoriously low and have remained this way for decades. The average salary is €26,948.87 and the modal salary (most frequent) is even lower, between €14-18,000.

In comparison, average annual salaries in 2023/4 were 56% higher in Germany, 43% higher in France and 8% higher in Italy, according to OECD figures.

It has been argued the lower wages in Spain are a reflection of the lower cost of living here. Yet economist Ignacio De La Torre said Spanish salaries are low even when adjusted for the cost of living. The cost of living is increasing each year too, as evidenced by rising rental prices which have inspired nationwide protests.

Spain also has one of the highest unemployment rates in Europe, where just over 70% of people aged 20-64 are employed.

A shortage of jobs and high unemployment could mean people will accept any job offered, no matter the pay or their qualifications.

Following Spain’s stats was Greece with 33% and Cyprus with 28.2% of people overqualified for their jobs.

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FACED with the ongoing trade war between the US and China, the International Monetary Fund (IMF) and dozens of other international institutions have begun bracing for a downward trend in global economic activity.

The wave of US protectionism has led the European Central Bank (ECB) to cut interest rates for the sixth consecutive time, bringing them down to 2.25%.

This move aims to counteract the negative economic effects of the ongoing trade war initiated by US President Donald Trump. 

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The Bank of Spain has also revised its economic outlook, with the President of the institution stating that “the ongoing tariff war will affect the Spanish economy,” though a recession has been “ruled out.”

The decision to cut interest rates is a clear sign that economic activity in the EU is slowing down.

“The general outlook for economic activity is faced with extreme uncertainty, and growth expectations have deteriorated due to the increase in tariff disputes threatening to slow down economic growth,” said Christine Lagarde, President of the ECB.

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The ECB has cut interest rates by 1.75% since last June, while the US Federal Reserve has followed a more measured approach, reducing rates by just 1% since September last year.

Before the wave of US-imposed tariffs, the Spanish economy was outperforming major Eurozone counterparts.

Spain’s GDP grew by 3.2% in 2024, significantly outpacing France and Italy’s 1% growth and Germany’s 0.2% contraction.