Galicia: The Region with the Lowest Activity Rate and Aging Population in Spain

Galicia, the second community with the lowest activity rate in Spain, is facing significant challenges due to its aging population. According to the 2023 edition of Urban Indicators published by the National Institute of Statistics (INE), Galicia’s cities are struggling with low activity rates, with Ferrol and Ourense ranking as the first and thirteenth cities in Spain with the lowest activity rate.

The activity rate is a crucial employment index for evaluating long-term economic growth. It is calculated by dividing the total active population, which includes people aged 16 or over who work or are able to enter the labor market (the employed and the unemployed), by the total population of working age.

Ferrol, in particular, stands out as the Spanish city with the lowest activity rate, at 50.1%. It is closely followed by two Asturian cities, Avilés (50.3%) and Gijón (50.4%). The top five cities with the lowest activity rates are completed by León (50.9%) and Cádiz (51%). Ourense occupies the thirteenth position with a rate of 52.4%. Other Galician cities such as Vigo, A Coruña, Pontevedra, and Santiago also have relatively low activity rates.

The low activity rates in Galician cities are closely linked to their aging populations. The INE report highlights that Ferrol has the highest median age among cities in Spain, at 51.6 years. Avilés follows closely with a median age of 51.1 years. Ourense ranks thirteenth with a median age of 49.2 years. A Coruña and Vigo also have relatively high median ages.

Furthermore, Galician cities have inverted population pyramids, with a smaller younger population compared to the older population. This is largely due to the low birth rate in the region. Lugo, Pontevedra, Vigo, A Coruña, and Ourense rank between thirteenth and seventeenth in Spanish cities with the lowest average number of children.

The INE report also provides data on the functional urban areas (AUF) in Galicia. The A Coruña metropolitan area ranks tenth in terms of average annual net income per inhabitant, with 13,990 euros. However, other Galician cities such as Santiago, Lugo, Ourense, and Ferrol have lower average incomes.

In terms of employment, the urban area of Vigo stands out with the eighth highest proportion of industrial employment in Spain, with a rate of 18.7%. The Ferrol area also has a significant weight in manufacturing employment, with 16.7%.

Overall, Galicia’s low activity rates and aging population pose significant challenges for the region’s long-term economic growth. Efforts to address these issues and promote employment opportunities are crucial to ensure a sustainable future for Galicia’s cities.

What strategies can Galicia implement to encourage labor force participation and attract young people to the region in order to address the challenges posed by the low activity rate

Ate. This is alarming for Galicia as a whole, as the region is already grappling with a rapidly aging population.

The low activity rate is a concerning trend for Galicia’s economy, as it indicates a lack of labor force participation and potential for economic growth. With fewer people actively working or seeking employment, the region may struggle to attract investment and stimulate business activity. This can have a negative impact on job creation, productivity, and overall economic development.

Furthermore, the aging population in Galicia adds an additional layer of complexity to the situation. As the population ages, there is a greater demand for healthcare services, pensions, and other forms of support for the elderly. This can put a strain on public budgets and resources, making it even more challenging to address the issues related to low activity rates.

To address these challenges, Galicia needs to focus on strategies that encourage labor force participation and attract young people to the region. This can be done through initiatives that promote entrepreneurship, skill development, and job opportunities in emerging industries. Additionally, policies that support work-life balance and flexible employment arrangements can also be beneficial in encouraging participation in the labor market.

Overall, the low activity rate in Galicia, particularly in cities like Ferrol and Ourense, poses significant challenges for the region’s economy and social welfare. Addressing this issue requires a comprehensive approach that focuses on both economic growth and the needs of the aging population. By implementing targeted policies and initiatives, Galicia can work towards creating a more vibrant and sustainable future for its communities.