According to financial economist Javier Santacruz, around 20% of Spanish companies lose money and another 25% earn nothing, which hinders salary increases.
As reported by elblogsalmon.com, financial economist Javier Santacruz attributes the slow growth of salaries in Spain to many companies not making a profit. He stated this in an interview on the programme Herrera en COPE.
“fundamentally the problem is that companies do not make money in Spain”
According to his calculations, approximately 20% of companies lose money and another 25% do not make a profit. The large listed companies in the Ibex 35 do make money, but they only represent a small part of the productive fabric.
The Active Population Survey (EPA) from the INE for the third quarter of 2026 records a historic high of employed individuals, with 22.85 million people, while unemployment rises to 10.18%. The average salary hovers around €2,400 gross per month and the modal salary, the most common in paychecks, stands at about €1,400.
By sector, public employment grew by 89,900 positions in that quarter, while the private sector lost 16,300 jobs. These figures do not allow for an understanding of the level of productivity or profitability of the jobs created.
For SMEs, the main issues are costs, financing, and sales trends. Companies with lower profitability find it harder to absorb higher labour costs, such as those arising from new agreements, or to undertake investments for growth.
The Ministry of Labour, led by Yolanda Díaz, has initiated the procedures to increase the Minimum Interprofessional Salary (SMI) in 2027. An increase of around 5% is being considered, which would set the minimum salary at about €1,282 per month in 14 payments. The final amount is still pending approval.
Santacruz points out that the most commonly received salary in Spain is the minimum, which creates intense competition among lower-skilled workers. Furthermore, the increase in the SMI raises the contribution bases and, with them, the labour costs for companies with tighter margins.
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