Spain is setting an all-time record in public expenditure on employees in 2024. At 172,350 million euros, the state’s personnel costs surpass all previous marks, representing an increase of 5.4% compared to 2023. This development stands in stark contrast to real wage growth in the private sector and raises questions about the efficiency and sustainability of public administration. Since Pedro Sánchez took office in 2018, public sector spending has continuously increased.
The Sánchez Era: An Unprecedented Rise in Personnel Costs
Since Pedro Sánchez assumed government in 2018 through a motion of no confidence against Rajoy, total expenditure on public service employees has exploded. From 127,668 million euros in 2018, it rose to the aforementioned 172,350 million euros in 2024. This represents an impressive 35% increase in just six years, corresponding to an annual growth of over 5%.
To put this development into perspective: In 2006, under the socialist government of José Luis Rodríguez Zapatero, expenditures were just under 98,104 million euros – not even 100 billion euros. Current expenditures are thus 75.85% higher than in 2006. By comparison: from 2006 to 2017, public sector personnel expenditures increased by only 26%. The Mariano Rajoy government showed a much more restrained development; between 2012 and 2018, the number of public sector employees barely increased by 14,038 individuals.
Structure of Public Employment in Spain: Who is Employed Where?
According to the Statistical Bulletin of Personnel in the Service of Public Administrations (January 2025), Spain has 3,037,432 public service employees across all public administrations. Of these, 1,634,510 are civil servants.
The distribution of personnel is as follows:
- Central administration (ministries etc.): Almost 100,000 public employees.
- Municipalities and other local entities: 527,204 employees.
- Autonomous Communities: The largest group, accounting for 62.66% of public employees. This is due to the transfer of responsibilities such as health and education to the regions.
- Local administration: 19.50% of public employees.
- Central administration: The remaining 17.75% of public employees.
It is notable that the majority of public employees (53.81%) are civil servants.
Discrepancy Between Statistics: Why the Numbers Vary
Interestingly, the figure of 3.03 million public sector employees differs from that found in the Active Population Survey (WPA), which reports 3.499 million in the public sector for the first quarter of 2025. The reason for this difference lies in the definition: the BEPSAP (Statistical Bulletin of Personnel in the Service of Public Administrations) does not include all employees, such as senior officials in public administrations, elected officials, or personnel serving constitutional bodies. The WPA, on the other hand, includes all employees of public companies and central and territorial administrations, including those contributing to the general social security system or affiliated with mutual societies.
Cost-Benefit Ratio: A Tax Burden for All Spaniards
The 172,350 million euros that public employees cost Spanish taxpayers in 2024 stand in a remarkable relationship to total tax revenues, which amounted to 294,734 million euros (according to the Tax Agency) in the same year. These figures illustrate that a significant portion of state revenue is directly used for personnel costs.
Expenditures on public employees in Spain are at an all-time high, and under the government of Pedro Sánchez, a new record for public personnel expenditure has been set every year. This is a trend that should be closely monitored to ensure the financial stability and performance of the country.
