In recent years, Spain has been performing well economically compared to fellow European economies. The economy grew around 3.5% in 2024 and approximately 3% in 2025, and now has an unemployment rate of less than 10%, the lowest since 2008. Whilst the average European country’s GDP grew by 1.3-1.5% in 2025. Spain has seen good progress in the overall economy, this derives mainly from a handful of sectors that have experienced exponential growth. Due to their quick growth, these sectors are having difficulty in the employment market, and are ultimately struggling on hiring new people due to the lack of labour.

In Spain, for years now, many individuals who overstay their visa have been forced to work in the black market. The black market refers to work that is either underwritten, or unrecorded. It includes dangerous activities such as selling drugs, but also regular work that is not reported, causing the Spanish government to lose government revenue. Without having official papers that allow them to legally reside in the country, they have to take up jobs that do not require papers—ultimately, leading to two issues: an increase in illegal activity and not enough workers to fill legal jobs.

To benefit from this issue, Spain is issuing a plan to legalize half a million undocumented workers who are currently residing in Spain. The benefits of this plan are countless. Spain will be able to use the untapped workforce, which will allow it to further push the country’s economic growth. Additionally, it will drive down black market activity by reducing the number of workers who cannot work in legal positions.

Moreover, another macroeconomic objective will be reached, as the government will be able to increase its revenue from taxes. More government revenue will allow the government to reduce its deficit, further assisting long term economic growth.

The third macroeconomic objective is lower unemployment, as productivity will increase, and more jobs will be filled, the unemployment rate will fall, further benefiting the Spanish economy. The plan, however, has two major downsides. The government will have to use its money and resources to legalize the undocumented immigrants. Additionally, the plan may result in higher inflation in the nation, as this is often the result of lower unemployment.

In conclusion, the plan will reach various macroeconomics objectives such as unemployment, potentially lower government deficit, etc, but actualizing this plan will be costly and require a lot of planning.

Works Cited
“Spain's economic case for migration.” BBC, BBC, 4 February 2026,
https://www.bbc.com/audio/play/w3ct6sdg. Accessed 4 February 2026. STAFF, RTBC. “What We’re Reading: The Country Legalizing Half a Million Undocumented Migrants.” reasons to be cheerful, 4 February 2026,
https://reasonstobecheerful.world/what-were-reading-spain-legalizes-undocumented migrants/. Accessed 4 February 2026.