A higher level of education brings better future job prospects and salaries. That seems like a simple summary for young people, yet the report produced by the BBVA Foundation and the Valencian Institute of Economic Research (IVIE), titled Present and Future of Spanish Youth: A Socioeconomic Perspective, makes it clear. Among those aged 16 to 29, earnings rise with education level. University graduates earn about 33.8% more than peers with only secondary education because they access better-paying roles, while those with higher vocational diplomas see salaries about 11.3% higher.
After the period of the so-called ‘ninis’—young people who neither work nor study—the most worrying situation is for those under 30 who start looking for work with only mandatory schooling. The result is temporary or part-time contracts in basic roles with low wages. “Labor precariousness affects a portion of young people in a lasting way and can shape their quality of life throughout the working years and even into retirement,” states the report led by Ivie’s director, Francisco Pérez.
Even more concerning, the consequences begin long before retirement. More than half of non-degree youths faced difficulty making ends meet (53.2%), about five points above the national average. Added to precariousness is the inability to plan long-term goals, like buying a home or starting a family. These individuals are also exposed to other risks that rarely affect those who hold a university degree. One such risk is a higher likelihood of automation impacting their jobs, except in roles where direct, in-person client interaction is essential. Precarity helps explain why independent, young adults who lead households have incomes roughly 40% below average (around 11,000 euros).
Although job instability tends to decrease with age and is lower for those with higher education, it can become a lasting feature. This is especially true for women, those working in construction and hospitality, and individuals who start work very young. That lack of stable employment reduces the incentive for employers to invest in training, due to the high turnover rate. If someone cannot escape this trap soon, it might accompany them throughout their working life.
Worse prospects than older generations
Despite the fact that education helps secure better opportunities, the overall outlook for youth is not favorable. The report notes that even the most highly qualified youths in Spain do not quickly enter stable labor market positions, often starting their careers in internship-based roles and earning salaries below what their education would predict. This situation directly translates into high subsistence risk and underemployment.
Overall, Spanish young people face greater macroeconomic uncertainty and tend to occupy lower-quality jobs. About a quarter of individuals aged 16 to 29 are on part-time contracts, a rate twelve percentage points higher than the overall population, and their earnings lag the national average by roughly 35%. Simultaneously, the incidence of temporary or fixed-term contracts among these cohorts is twice the average, and the trajectory of earnings across their working life is slower. In the past, younger adults reached a similar earnings base by their mid-20s; today, many have not reached that level by age 34.