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Spain Human Capital Overview
Spain is considered one of the main economic powers in all of Europe. In the entire Eurozone, it’s considered the fourth-largest economy.
All of this points to, not only a very stable country, but also one that’s a great hub for investment from the outside. The country has great trade partnerships with many of the top countries in the world. It has great infrastructure and is working to diversify its economy.
Here are some facts you should know about human capital in Spain.
Over the last few years, Spain has seen the value of its startup ecosystem explode. Between 2015 to 2021, the value of it increased by more than 300%, all the way up to €46 billion. That’s a huge reverse from just a few years ago, when many younger people were leaving the country for better opportunities elsewhere.
- In the first half of 2021, venture capital investment reached €1.9 billion, the highest it’s ever been. That number was higher than the total of VC investment for all of 2020.
- English Language Proficiency: Spain doesn’t just have a strong focus on English speaking skills. They are a multi-lingual nation. Many residents here are taught both English and Spanish from a young age. There are even plenty who learn Portuguese, French, Arabic and other world languages.
- Well-Developed Infrastructure: Spain is a very developed country, with many multi-national companies already located there. This calls for well-developed IT infrastructure, which is present all over the country.
The tech sector is a major one in Spain, which is home to the 14th largest economy in the world. Here are some of the other important elements of local economic activity:
- Automotive: This industry is among the largest employers in the entire country. It’s the second largest manufacturer of cars in Europe, and the eighth largest in the world.
- Agriculture: Spain uses a lot of irrigation to farm, and it results in a solid industry. Some of their main products are potatoes, sugar beets, cotton, olive trees, wine, vegetables and citrus fruits.
- ● Energy: Spain is one of the world’s leaders in solar power. It also is at the forefront of wind energy. The country is very focused on alternative, clean energy sources.
There are many business sectors that are popular to outsource to Spain. Manufacturing is one of the biggest, but IT outsourcing has become very popular in recent years. This has grown immensely over the last 20 years. Accounting, human resources and customer service are also popular sectors for outsourcing to Spain.
Overall, Spain ranks 33rd across the world for English proficiency. This is considered to be moderate in terms of overall English proficiency. However, this level of proficiency is much higher in categories of workers who are more educated, as well as the younger population, which is being taught English more often.
The comparable wages in Spain is one of the biggest reasons why companies will outsource IT services there. In general, the labor costs in Spain are roughly 50% lower than they are in the U.S. This can be a huge savings for similar talent levels.
Spain is the 30th most populous country in the world, with an estimated 47.5 million people. It’s the sixth most populous country in Europe, thanks to many major urban areas and population centers. Significant cities for those looking to outsource to Spain include:
- Barcelona: Barcelona is home to the “Silicon Valley” of Spain — the Districte de la innovacio. A huge number of tech companies call the region home, and it’s leading to huge advances in innovation.
- Valencia: The Valencia region is home to many tech startups, and it’s also a great region for tourism, being located right on the eastern coast. In fact, the Spanish Research Institute says Valencia is home to the most startups per capita in the entire country.
- Madrid: In addition to being the country’s capital, Madrid is also very forward-thinking. It’s home to some of the top tech minds in the country, and some of the top startup companies as a result.
Spain has some of the lowest voluntary turnover rates in the world. In fact, in certain sectors, the rate dropped as low as 3% in recent years. Part of this is because of the relatively high unemployment rate over the last few years, as people don’t want to voluntarily lose jobs they can get. This also is because of the high job satisfaction and pride in their work.
SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization.
Contact us today to learn more about how you can expand your business in Spain.