Economic and market development prospects in Valencia and the Valencia region.

Valencia Region Labor Market and Economic Overview (2015–2025)

Based on data available through October 2023, with expert commentary and preliminary forecasts for 2024–2025.

1. Labor Market Trends (2015–2025)

Unemployment Rate

In 2015, the unemployment rate in the Valencia region was approximately 20.5%.
By 2019, it had dropped significantly to around 13.2%.
Following a temporary rise to ~15% in 2020 due to the COVID-19 pandemic, recovery was swift.
By 2023, unemployment stabilized at ~11.5%.
Forecasts for 2024–2025 project further improvement, with rates expected to fall to 10–11%.

Note: The actual unemployment situation is partially obscured by a large informal economy, driven by excessive bureaucracy, high tax burdens (among the highest globally), and complex labor laws—factors that especially affect micro and small enterprises.

Another important factor is the significant share of economically inactive but affluent residents, particularly those living off inheritance or assets, who contribute to consumer spending but not employment statistics.

Employment Sectors

As of 2023:

75% of the workforce is employed in the services sector
15% in industry
10% in agriculture

Growth has been strongest in services—particularly tourism, hospitality, and retail—but also in emerging technology sectors that require technical expertise. These trends point to a gradual diversification of Valencia’s labor market.

Salaries

In 2023, the average gross monthly salary in Valencia was around €1,300, below the national average of €1,500.
Since 2015, wages have risen at 2–3% per year on average.
Post-2023, wage growth has begun to outpace inflation (estimated at 5%), particularly in high-demand sectors such as tech and logistics.
The regional government’s push to attract multinational companies and tech industries is fueling a shift toward better-paid employment opportunities.

Labor Force Participation

In 2023, the labor force participation rate (ages 16–64) was ~66%
The employment rate reached ~60%, showing improvement but still trailing behind Spain’s national average.

2. Economic Indicators (2015–2025)

GDP Growth and Economic Dynamics

In 2015, the GDP of the Valencia region was approximately €105 billion.
From 2015 to 2019, annual GDP growth averaged 2.5–3%.
In 2020, the pandemic caused a 4% contraction, but a robust rebound followed:
- 2021–2022: GDP growth of 4–5% annually
- 2023–2025 (projected): Stabilization around 2–3% annually

This positions Valencia above the European average in terms of recovery and long-term economic resilience.

Inflation

2015–2019: Inflation remained moderate at ~1.5–2%
2022: Inflation spiked to ~5%, mainly due to rising energy and commodity prices
2024–2025 forecast: Expected return to ~2%, aligning with ECB targets

3. Infrastructure, Industry, and Investment

Strategic Development

Between 2015 and 2025, the region invested heavily in:
- Transport and logistics infrastructure, including road and port expansions
- Tourism and hospitality upgrades, especially along the coast
- Digital transformation and renewable energy technologies
The Port of Valencia, among the largest in Europe, continues to drive trade and job creation in warehousing, transport, and global commerce.

Industrial Projects and Technology

Spain’s national investment strategy emphasizes attracting major industrial operations.
In Valencia, this has resulted in:
- Growth in manufacturing, automation, and electronics
- Establishment of large-scale facilities, such as the Volkswagen battery factory in Sagunto

Summary: A Region on the Rise

The Valencia region has undergone impressive economic transformation over the past decade. With:

A steadily improving labor market
Increasing foreign investment
A highly diversified economy
Strong commitments to green energy and technological innovation

…Valencia offers a compelling case for long-term real estate and business investment.

Although challenges remain—such as bureaucratic inefficiencies, salary gaps, and labor law rigidity—the overall trajectory is clearly upward. With continued infrastructure development, industrial expansion, and growing demand for skilled labor, Valencia is set to remain one of the most attractive regions in Spain for economic growth and residential investment through 2030 and beyond.