Alicante’s aging labor market reshapes jobs, sectors, and the push for new generations

The labor market faces a rapid aging trend in Alicante

Aging presents a steady challenge for a province already juggling a large retiree cohort and a shrinking pool of younger workers in many sectors. Across multiple industries, filling roles left by retirees is becoming increasingly difficult as the population ages at an extraordinary pace.

Over the decade from the first quarter of 2013 to the first quarter of 2023, the active workforce in Alicante aged over 55 rose from 115,000 to 206,900. This nearly doubles the share in this age group, now representing 21.6% of the total workforce, including both employees and job seekers, up from 12.9% a decade earlier according to EPA data provided by the Valencia Institute of Statistics. The growth of this experienced segment reshapes hiring needs across the economy.

Meanwhile, the youngest segment, ages 16 to 24, shows only a slight decline in active participation, from 64,100 to 63,100 this decade. That group largely remains in education and is not counted as part of the active population seeking work, even though many still live and study in the area.

In the absence of a robust influx of new entrants, the region’s traditional sectors face a tougher test for succession. The generation currently entering the workforce is smaller, which slows fresh talent pipelines for businesses reliant on young labor. This trend compounds the challenge of sustainment in a dynamic job market that needs ongoing replacement for retiring workers.

Lack of relief, a problem for Alicante’s traditional trade

The aging trend becomes especially evident in the outgoing cohort of 25 to 34-year-olds, a group typically on the cusp of launching careers in business and industry. Ten years ago this segment reached 209,500; now it stands at 168,100, signaling that the younger generation is nearly 20% smaller than those closest to retirement. Overall, the share of workers under 35 has fallen from 30.7% to 24.1% of the workforce, highlighting the reduced pool of young, career-ready talent.

A region where agriculture has long been a cornerstone faces similar pressures. The primary sector already shows a high share of workers aged 55 and older, with up to 37% of the active workforce in agriculture over 55. When unemployment is excluded, the figure climbs to about 49.6%. Industry leaders note that many foremen and managers are in the 55–65 range, and there is concern about a dwindling pipeline of younger workers entering farming roles, partly due to reduced interest in manual labor and changes in training cycles. Foreign-born workers have become more prevalent in the sector, partly in response to the decline of local participation in manual farming tasks.

In the more labor-intensive segments, including footwear, the aging trend is pronounced. Roughly 22% of the overall workforce in related industries is over 55, with even higher shares in jobs that require more physical effort. Industry leaders have long pressed for expanded vocational training, especially double cycles in vocational education, and for campaigns to draw young people into manufacturing and related trades. The need for a healthier influx of younger workers remains urgent as automation and process improvements evolve, but the timing of technology ready to replace retiring workers does not always align with retirement patterns.

The services sector also shows a growing share of experienced workers. The proportion of staff over 55 has risen from 11.5% to 21.2% in recent years. While sector-specific data are sparse, broader studies indicate many frontline roles in health and management see workers reaching retirement age sooner than in the past, underscoring the need to re-engage older professionals who want to stay in the labor market.

Regional employment bodies warn about age bias in hiring, noting that many job seekers in later life face hurdles when re-entering the market. Yet more employers are starting to value the stability and maturity that older workers bring, including consistent performance and lower turnover, as part of a broader strategy to maintain productivity and knowledge transfer. Social integration remains a key requirement as more workers from diverse ages join the workforce in Alicante and beyond.

Ultimately, the labor landscape suggests that extending working life may become a common feature in Spain, paralleling trends in other aging economies. While automation will play a part, it often arrives too late to fully compensate for the sudden loss of a large retiree wave. This scenario pushes both policy and business to explore flexible retirement options and upskilling pathways that keep talent engaged longer.

Footwear aims to attract young people aged 16 to 24 to guarantee generational change in the industry

In agriculture, a significant portion of the workforce is older, with 37% over 55 among the active population and nearly half when unemployed workers are excluded. Industry leaders observe that many farm managers and foremen are near retirement, and a shortage of younger entrants persists as training opportunities for new generations wane. Acknowledging this, the sector notes that many workers are foreign-born, reflecting evolving workforce demographics as younger locals shift away from traditional manual roles.

In manufacturing, including footwear, the aging trend remains evident. The share of workers over 55 is notable, especially in labor-intensive roles. Industry representatives emphasize the need for expanded vocational training and campaigns to attract younger talent. They advocate for additional training cycles to prepare a new generation for hands-on production work, enabling a smoother transition as older workers retire.

The services sector shows aging dynamics too, with a growing proportion of experienced professionals. Health and management sectors, in particular, exhibit higher shares of workers over 55, underscoring the importance of retention and knowledge transfer. Stakeholders stress that promoting age diversity and building inclusive hiring practices will help sustain service delivery while addressing workforce shortages.

Regional speakers also highlight the necessity of recognizing the value of mature candidates. Employers increasingly appreciate stability and reliability, while increasing training opportunities helps older workers update skills and stay competitive in a changing job market. This balanced approach aims to ensure steady generational renewal across Alicante’s industries and beyond.