The winds are blowing favorably for employment in the public sector. Around 60% of civil servants will retire in the next ten years. The sector is also describing the upcoming job opening as “historic,” as it is expected to surpass last year’s 100,000 job openings. This scenario is leading to an increase in the number of those seeking security, stability, and a regular work schedule. When political uncertainty, which slows investment, as well as excessive bureaucracy and high tax pressure, are also factored into this equation, a survey of entrepreneurial intent in Spain promoted by e-Residency shows a 17% decline. Ana Fernández Laviada, president of the Spanish Observatory of Entrepreneurship, also warns of a “stagnation in entrepreneurial determination,” with an index of only 11.2% among the Spanish population.
These developments are also having an impact on academies preparing for competitive exams, where a significant increase in students is being recorded. OpositaTest estimates this increase at 80%, while both Adams and the Center for Financial Studies estimate a 20% increase. They agree that the next Public Employment Opportunity List (OEP), to be published by the Federal Office of Economics (BOE) in June, will exceed the previous job openings for both the General State Administration (63,000 positions) and regional (25,000) and local (5,200) positions. There’s also significant news: the number of university candidates for civil service positions is growing; the age group has increased from 24-30 to 30-40, leading to a real trend of workers moving from the private sector to the public sector.
According to a study by OpositaTest, 68% of workers would be willing to leave their secure private-sector job to take on a public-sector position. “There’s a shift in priorities,” explains Jonathan García, the company’s CEO, “because entrepreneurship isn’t the best choice right now.” High salaries, which according to a recent study by the Bank of Spain are 25% higher than the private sector, are, in his opinion, “another reason why 10 million Spaniards are already taking the exam or have declared their intention to do so,” as outlined in the report “The Weight of the Opponent in Spain” by OpositaTest.
One example is Carmen Hernández Robledo, a former auditor at KPMG, who left her position to prepare for the Group A1 exam (200 topics). At 31, she is now an auditor. “It was chaos. I did it without pay and with total dedication,” she reports. The reason for her decision to enter the public service lies in her conviction: “I have a public vocation and I want to be part of social change.” She acknowledges that private companies are “more agile and have more modern technologies” and that in publicly listed companies, “it’s difficult to make independent decisions, but the culture there allows for a better work-life balance.”
Luis Ángel Abad, head of the State Heritage Unit in Toledo, also didn’t hesitate to take the exam when he was laid off after 20 years in the banking sector. “At 46 and the father of a large family, I didn’t consider entrepreneurship because I lacked the necessary capital, nor did I consider returning to the private sector because at that age, you’re considered out of the market.” He describes employment in the public sector as a great unknown, highlighting “the high qualifications of the employees.” He emphasizes that his example is not anecdotal and describes the situation in the private sector as a “hijra.” “There are many people who enter the administration with permanent contracts,” he says.
Spain is therefore in a cycle in which public service is gaining importance because the entrepreneurial culture is not deeply rooted in the country, emphasizes Fernández Laviada. “The lack of awareness of opportunities and the fear of failure are hindering entrepreneurship,” she adds.
According to the GEM 2024-2025 (Global Entrepreneurship Monitor) report, young people continue to represent the greatest potential for entrepreneurship, although the entrepreneurial activity rate (TEA) is down to 7% compared to the previous year. “It should reach at least 10 percent of the European average,” says Fernández Laviada. “The stagnation is worrying,” says Luis Abajo Víbora, sales director at the consulting firm Grupo Afianza. “This means there is no new money coming in and no jobs being created.” He blames high taxation with rising tax rates and Social security contributions and labor market regulation are responsible for this. He describes his experience: “For an entrepreneur, firing an underperforming employee is an ordeal: You first have to identify them, inform them, grant them a hearing, hold another hearing if a union representative is involved, and then meet a deadline for submitting your comments.” Abajo Víbora recommends first founding a startup, which is exempt from profit taxation for four years, rather than establishing a small or medium-sized enterprise (SME), which has a reduced tax rate for the first two years and is taxed at 25% thereafter.
