[Spain] Government now paying more people than the private sector

In Spain, a concerning milestone has been reached as the number of people on the government payroll now outnumbers the number working in the country’s private sector, The Olive Press reports.

Recent figures revealed that 18.21 million people in Spain currently receive state income through pensions, public sector salaries or social benefits, compared to 17.69 million people earning through private enterprise, according to reporting from the Objective. 

The milestone is a pivotal moment in the country’s economy and one which reinforces increasing concerns over future financial sustainability.

Spain’s ageing population is reportedly at the heart of the issue. The number of pensioners had soared to 9.2 million by August, equal to 44 per cent of the working population of just 21.6 million people, Spain’s National Statistics Institute (INE) said.

Having only six in 10 people economically active from a total population of 48.8 million means less than half of people are shouldering the country’s pension payments; now above €12.8 billion per month. 

The Olive Press reports that ironically state expenditure on pensions is growing at a faster rate for public sector retirees than for those in the private sector. 

Under Spain’s Clases Pasivas system, pensions for civil servants now account for nearly 711,000 beneficiaries, at a monthly cost to the state €1.57 billion.

Of the Spanish population paying for these pensions, nearly half of Social Security contributors (46 per cent) are reportedly now over 45, highlighting how top-heavy Spain’s demographics have become.

Five years ago the figure was 41 per cent. Now concerns are arising about how the state will support an ever-larger pool of pensioners.

August 2024 data additionally showed that 1.8 million people in Spain were on paro (unemployment benefits) while a further 1.96 million individuals, across 649,000 households, rely on the Minimum Living Income (IMV).

The public sector workforce itself has also grown by 12 per cent since December 2023 to over 3.6 million people. The figures include employees of public enterprises and central and regional governments.

Source: The Olive Press

(Link via original reporting)

In Spain, a concerning milestone has been reached as the number of people on the government payroll now outnumbers the number working in the country’s private sector, The Olive Press reports.

Recent figures revealed that 18.21 million people in Spain currently receive state income through pensions, public sector salaries or social benefits, compared to 17.69 million people earning through private enterprise, according to reporting from the Objective. 

The milestone is a pivotal moment in the country’s economy and one which reinforces increasing concerns over future financial sustainability.

Spain’s ageing population is reportedly at the heart of the issue. The number of pensioners had soared to 9.2 million by August, equal to 44 per cent of the working population of just 21.6 million people, Spain’s National Statistics Institute (INE) said.

Having only six in 10 people economically active from a total population of 48.8 million means less than half of people are shouldering the country’s pension payments; now above €12.8 billion per month. 

The Olive Press reports that ironically state expenditure on pensions is growing at a faster rate for public sector retirees than for those in the private sector. 

Under Spain’s Clases Pasivas system, pensions for civil servants now account for nearly 711,000 beneficiaries, at a monthly cost to the state €1.57 billion.

Of the Spanish population paying for these pensions, nearly half of Social Security contributors (46 per cent) are reportedly now over 45, highlighting how top-heavy Spain’s demographics have become.

Five years ago the figure was 41 per cent. Now concerns are arising about how the state will support an ever-larger pool of pensioners.

August 2024 data additionally showed that 1.8 million people in Spain were on paro (unemployment benefits) while a further 1.96 million individuals, across 649,000 households, rely on the Minimum Living Income (IMV).

The public sector workforce itself has also grown by 12 per cent since December 2023 to over 3.6 million people. The figures include employees of public enterprises and central and regional governments.

Source: The Olive Press

(Link via original reporting)