BTN News: In Spain, the middle class is in turmoil. As the cost of living surges and economic uncertainty grips the nation, a vast majority of Spaniards find themselves in a precarious situation, where the promise of prosperity seems more distant than ever. Recent data from the Center for Sociological Research (CIS) reveals that 58% of citizens believe today’s young generation will face a harsher reality than their parents. Yet, paradoxically, many young people express satisfaction with their current circumstances, even harboring hopes for a brighter future. What is behind this contradiction? And what does it say about the elusive “social elevator” that was once believed to propel families toward upward mobility in Spain?
This article delves into the complexities and fractures within Spain’s middle class, examining the impact of economic inequality, stagnating wages, the soaring cost of living, and a divided welfare system. As we navigate these challenges, a picture emerges of a society struggling to find balance amid shifting socio-economic landscapes.
A Fading Middle Class: “Who Still Belongs?”
Spain’s middle class has long been a broad and diverse group, encompassing a wide range of incomes and lifestyles. According to economist Olga Cantó from the University of Alcalá, a staggering 59.63% of Spaniards identified as middle class in 2021, which is significantly lower than France, the Netherlands, or Denmark, where this figure hovers around 70%. But a deeper dive into these numbers reveals a more nuanced story. The largest share within this category belongs to the so-called “middle-low class”—those whose earnings range between 75% and 125% of the national median income. In Spain, this subgroup comprises nearly 35% of the population, compared to over 40% in Germany and almost 50% in France.
Contrary to expectations, having a sizable middle-low class is not necessarily a cause for alarm. For many economists, class is not a measure of wealth but rather of social homogeneity. A higher concentration in the middle can mean greater equality, but when this middle segment shrinks, it often points to growing inequality, with more people slipping into the lower income brackets.
Wage Stagnation and the Cost of Living: A Complicated Equation
“Are Wages Keeping Up with Reality?”
At first glance, wage statistics in Spain appear to paint a positive picture. According to a 2023 OECD report, the average real salary stood at €30,655, compared to €29,898 in 1994. While this suggests stagnation rather than decline, it does not capture the whole story. As the economist Julio Rodríguez López points out, the same income can stretch dramatically differently depending on essential expenses, such as housing. For instance, rental costs in regions like the Balearic Islands have doubled since 2011, with cities like Barcelona reaching rental prices equivalent to the minimum wage.
This disparity is even more glaring for young people trying to become independent. Their salaries often fall within the third decile—the lowest 30% of income earners—meaning that for many, the cost of a typical apartment represents 77.2% of their earnings, driving them toward shared or substandard living arrangements, a phenomenon sometimes called “vertical shantytowns.”
The “Vertical Shantytowns” and Home Ownership Myth
“Why Home Ownership No Longer Guarantees Security?”
Spain has long been a country of homeowners, a legacy of post-World War II policies aimed at stabilizing the working class. According to the OECD, around 76% of Spaniards live in owned homes, compared to just 51% in Germany. But this perceived security is eroding. With rising housing costs outpacing wage growth, even those fortunate enough to own a home find their ability to save or invest elsewhere increasingly constrained.
The situation is even more challenging for the younger generation. For those without inheritance prospects, home ownership remains a distant dream. The cost of mortgages, which already accounts for nearly 30% of the average income, becomes a near-impossible hurdle for those earning below the median, leaving them trapped in a cycle of high rents and limited economic mobility.
Education and Inequality: A Dual Welfare State
“Segregation in Schools: A Sign of a Divided Society?”
Education, often seen as a pathway to upward mobility, has also become a battleground for economic inequality in Spain. According to a 2018 Save The Children report, school segregation has surged by 13.4% over the past decade. Public schools, increasingly seen as the domain of low-income or immigrant families, face a stigma that drives many middle-class parents to opt for semi-private or “concerted” schools, which receive state funding but maintain selective admission policies.
Sociologist José Saturnino Martínez García argues that these schools are not necessarily better in quality. Instead, they benefit from social selection. Students from higher-income backgrounds outperform those from lower-income backgrounds in standardized tests, not because of superior education but due to socio-economic advantages that public schools, burdened with underfunding, cannot replicate.
The Economic Rollercoaster of Spain’s Middle Class
“How Did We Get Here?”
The Spanish middle class expanded dramatically during the years following the 1959 Stabilization Plan and the early decades of democracy, driven by robust economic growth. However, this growth came to a screeching halt with the 2008 global financial crisis, a period described by Martínez García as a “rollercoaster ride,” marked by a series of economic ups and downs, from the financial crash to the COVID-19 pandemic. For those who came of age during this era, the future feels uncertain; they have witnessed two decades where economic expectations were repeatedly dashed.
The decline in stable, high-paying jobs, coupled with wage stagnation and increasing living costs, has left many questioning the viability of the “social elevator” that once seemed to promise a better future.
The Illusion of Equality: A Nation Divided
“A Fractured Middle Class and the Quest for Stability”
Spain today is a country of paradoxes. It has a shrinking middle class and an expanding lower-income population, a rising cost of living but stagnant wages, and an educational system that both mirrors and magnifies these inequalities. This complex reality presents a significant challenge for a society trying to find a sense of shared identity amid growing economic fractures.
Economist Emmanuel Rodríguez argues that Spain’s socio-economic model has long depended on a fragile balance between small-scale property ownership and welfare programs tailored differently for various social strata. Yet, as these divides deepen, the question looms: Can Spain reconfigure its social contract to support a broader middle class, or will it continue to fragment?
Conclusion: A Future Uncertain
As Spain grapples with these challenges, one thing is clear—the middle class, once seen as the backbone of a thriving society, is at a crossroads. Whether Spain can navigate this uncertainty and forge a more inclusive future remains to be seen. But for now, the promise of prosperity for all remains elusive, a testament to the profound transformations underway in the fabric of Spanish society.
