It doesn’t fail. Every time I go shopping at the supermarket I come across someone who complains about the price of fruit, of the eggs or the unattainable that the salmon has set for the little that the salary rises of the humble workers. That buzz now has international support.
The report has just been published ‘OECD Employment Outlook 2026’ which analyzes the labor market of the member countries and, among praising the Spanish labor market, has left us with a small barb: low salaries continue to be Spain’s weak point.
A report that puts figures to the discomfort. The Paris-based organization analyzes the occupational health of the more than 40 member countries every year. In 2026, the organization recognizes important advances in the Spanish labor market: more employment, less temporalitya stoppage that goes down little by little. But when it comes to the salaries section, the tone changes.
According to OECD data, real wages, after inflation, remain 2% below where they were at the beginning of 2021, just before prices soared. That is, in terms of purchasing power, salaries are worse than five years ago. This percentage places Spain among the three countries with the greatest drop in purchasing power since the pandemic, only behind Italy and Australia. Much of Europe has already recovered its purchasing power after the post-pandemic downturn, but Spain continues to lag behind.
The minimum wage rises, the rest stagnates. It is worth stopping to analyze salaries in Spain because during the last five years not all salaries have evolved the same. The minimum wage has been going up for years by decree and this 2026 reached the 1,221 euros per month3.1% more than last year. Since 2018 it has grown more than 60%. This salary increase, the only one that is in the hands of the Government, has protected those who earn the least.
The problem is what happens above that mandatory minimum that remains in the hands of companies. While the minimum has been advancing, the average salary has barely movedand the distance between the two narrows, causing more and more employees to approach that income floor, so that an employee with several years of experience can charge just a little more than a young man in his first job.
Increase in real wages according to the OECD. Spain in the tail group
It’s math. The INE data confirm that the labor cost per worker rose 4.9% in the first quarter of 2026. However, if this figure is crossed with an inflation that is around 3%, the real margin of improvement that remains is small, and for a large part of the workforce, the increase in their purchasing power is almost non-existent.
“Although real wages grew by 2% during the last year, they are still 2% below their level in the first quarter of 2021, which places Spain among the OECD economies where they have fallen the most since the Pandemic,” the international organization warns, highlighting Spain’s wage stagnation.
Why don’t salaries start? The OECD points to an old acquaintance to justify this stagnation: productivity. Spain has hardly improved its productivity figures for a decade and that limits how much a salary can rise without the company losing margin. “Given that labor productivity growth has stagnated over the last decade, and in a context of renewed short-term inflationary pressures, real wages are anticipated not to rebound throughout 2026 and 2027,” the OECD report indicates.
The positive side is that, although the situation has stagnated in recent years, Spanish companies have become less reactive to the ups and downs of the economy. The proportion of companies that have laid off their employees despite changes in the economy has increased from 8.9% at the end of 2019 to 4.3% in the first quarter of 2026.
The organization attributes this decline to the application of the labor reform in 2022. “The reform has driven greater recourse to permanent contracts: the proportion of workers with temporary contracts fell from 24.8% in the first quarter of 2022 to 14.8% in the first quarter of 2026, although it is still higher than that of most OECD countries,” the report states.
Unemployment, the wound that does not close. The other burden that the OECD points out in the Spanish labor market is more than well known, but no less serious. Spain remains the second country with the highest unemployment rate of the entire OECD, more than double the average and only behind Finland. According to the unemployment data of the Ministry of Labor, in May it fell to 10.3%, reaching 2007 levels. It is an improvement, yes, but from a very high starting point.
Behind that figure there is also a factor of geographical inequality. The difference between the regions with the most and the least unemployment reaches 15.5 points, well above the OECD average. Looking for work in Melilla is not the same as in the Basque Country, and that gap It is also transferred to the income of each household, according to the report itself.
Image | Unsplash (Ru Dur, Mitchell Luo)
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