Spain loses €45 billion to absenteeism crisis

Workplace absenteeism has become a costly and persistent problem for Spain’s economy. New data shows that lost productivity linked to sick leave and other absences cost the country more than €45 billion in 2024 alone. The figures reveal that absenteeism now accounts for roughly 7 per cent of all agreed working hours, a proportion that continues to rise across most regions despite the broader economic recovery and falling unemployment. Regional Differences in Lost Working Hours Northern Regions Lead the Rankings The Basque Country and the Canary Islands top the national ranking, both recording absenteeism rates of around 9.1 per cent in the first quarter of 2025. Cantabria follows closely behind with 8.7 per cent, indicating a worrying trend in northern Spain and island territories. Several factors contribute to these regional variations. Northern regions tend to have higher proportions of industrial and manufacturing employment, where physical strain and repetitive tasks can lead to increased health-related absences. The Canary Islands’ seasonal labour market and reliance on service-sector jobs also play a role, with temporary contracts often linked to higher short-term absences. At the other end of the spectrum, Baleares reported the lowest absenteeism rate in the country, with only 5.6 per cent of working hours lost. Madrid (6.2 per cent) and Andalucia (6.4 per cent) also performed relatively well. These regions benefit from a stronger concentration of service-sector and office-based roles, where remote-working options, flexibility, and preventive health measures have helped to limit absences. Economic and Social Impact Billions Lost in Productivity The estimated €45 billion loss reflects not only missed working hours but also the broader economic chain reaction that follows. Reduced output, disrupted workflows, and the need to hire temporary replacements can all inflate costs for employers and public institutions. The financial impact of absenteeism is now equivalent to roughly 3.5 per cent of Spain’s Gross Domestic Product (GDP), placing it among the most pressing labour-market inefficiencies in Europe. For comparison, the average absenteeism rate across the EU stands closer to 5 per cent, highlighting Spain’s particular vulnerability. Small and medium-sized enterprises (SMEs), which make up over 99 per cent of Spanish businesses, are especially affected. With fewer staff available to cover absences, many SMEs experience lost contracts, delivery delays and reduced client satisfaction. In sectors such as logistics, healthcare, and hospitality, managers report an increasing struggle to maintain staffing levels. This has led some firms to adopt attendance-based incentive schemes or invest more heavily in workplace-wellbeing programmes to counteract the trend. Causes Behind the Growing Trend Health, Stress and the Changing Workplace Experts identify multiple drivers behind Spain’s high absenteeism rates. Mental-health issues, stress, and musculoskeletal disorders remain leading causes of medical leave. The post-pandemic shift to hybrid working has also blurred the line between work and rest, leading to burnout and longer recovery periods for many employees. Spain’s generous sick-leave policies, combined with relatively high job protection for permanent employees, may inadvertently encourage longer absences in certain cases. On the administrative side, delays in medical assessments and the renewal of sick-leave certificates often extend the official duration of time off. Cultural attitudes also play a role. Surveys indicate that around 40 per cent of Spanish workers believe their colleagues take advantage of sick leave, while a similar proportion admit feeling pressured to attend work even when unwell, a paradox that continues to shape workplace culture. Spain lost over €45 billion to absenteeism in 2024, about 3.5 per cent of GDP. Average rate: 7 per cent of total agreed working hours. Basque Country, Canary Islands and Cantabria have the highest rates. Baleares, Madrid and Andalucia report the lowest. Health issues, workplace stress and inefficient bureaucracy are key drivers. SMEs face the sharpest impact due to staffing shortages. Towards a Healthier, More Efficient Workforce Addressing absenteeism will require a combination of policy reform and corporate responsibility. Experts suggest faster digital processing of medical leave, greater investment in occupational health, and stronger incentives for prevention and early intervention. For employers, the focus may need to shift from monitoring attendance to improving engagement and wellbeing. Companies that encourage open communication, flexible scheduling, and mental-health support tend to report lower absenteeism and higher productivity. Absenteeism is not merely a labour-market statistic but a reflection of the nation’s social and economic health. Tackling its root causes will demand sustained cooperation between government, businesses and workers — an investment that could ultimately return billions to Spain’s economy and strengthen its workforce resilience.