VZCZCXRO8625
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHMD #0373/01 0910649
ZNR UUUUU ZZH
P 310649Z MAR 08
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC PRIORITY 4556
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAS/AMEMBASSY ALGIERS 3991
RUEHBO/AMEMBASSY BOGOTA 5341
RUEHCV/AMEMBASSY CARACAS 1285
RUEHQT/AMEMBASSY QUITO 1408
RUEHRB/AMEMBASSY RABAT 6089
RUEHLA/AMCONSUL BARCELONA 3377

UNCLAS SECTION 01 OF 02 MADRID 000373 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SP ELAB ECON PGOV
SUBJECT: IMMIGRATION IN SPAIN: THE END OF EL DORADO? 
 
REF: A. 2007 STATE 1597 
     ¶B. 2008 MADRID 177 
 
MADRID 00000373  001.2 OF 002 
 
 
 
¶1. (U) Summary.  According to several Spanish sources, Spain 
in recent years has received the second largest number of 
immigrants in the world after the U.S.  During Spain's 
construction boom, this labor influx proved to be an 
important asset.  However, as Spain's economy slows, and 
unemployment levels increase, more and more Spaniards are 
giving voice to concerns about immigration and what they 
believe are its potential negative effects on the economy. 
The March 9 election campaigns drew on this concern, with 
immigration becoming a major theme.  As the economy continues 
to soften, this is an issue that will gain in prominence for 
the average Spaniard. End Summary 
 
---------------- 
Immigration Boom 
---------------- 
 
¶2. (U) Over the past 10 years, Spain experienced an 
immigration boom, opening its doors to what is now 5 million 
immigrants or a little over 10 percent of Spain's population. 
 The immigrant community is comprised primarily of those from 
Morocco, Romania and Latin America (Ecuador, Colombia, and 
Peru).  The growth in the past three years has been even more 
striking with Ministry of Labor statistics showing that 3.2 
million immigrants took part in Spain's labor market in 2007 
compared with 500,000 in 2004.  Local experts point to 
Spain's geographical position as the door to Europe, its 
generous social safety net policies (legal and illegal 
immigrants have full access to public health care and 
education), and its more lenient immigration policy as 
factors behind this heavy increase. Zapatero's decision to 
provide amnesty to 600,000-700,000 illegal immigrants in 2005 
is also credited with encouraging immigration. 
 
¶3. (U) The sudden availability of inexpensive labor proved to 
be a boon for Spain during its housing construction high 
point. The influx of immigrants fueled a sector which at one 
point represented 18% of GDP.  According to INE statistics, 
99% of the construction employment generated in the Madrid 
region was held by immigrants.  The influx also propped up 
Spain's population growth in the face of a fertility rate 
below the replacement level.  In late 2006, the GOS reported 
that immigration had sparked a 40 percent growth in Spain's 
economy between 2000 and 2006.  Of the 687,500 new jobs 
created in 2006, two-thirds were filled by immigrants. 
 
--------------------------------------------- --- 
AS ECONOMY SLOWS, OPINON OF IMMIGRATION CHANGES 
--------------------------------------------- --- 
 
¶4.  (U) Spain's residential construction boom reached its end 
in the summer of 2007, affecting the sector in which up to a 
quarter of all immigrants are employed.  Overall unemployment 
increased to 2.3 million in February 2008 according to the 
Ministry of Labor, pushing the unemployment rate to somewhere 
between 8.6 and 8.8 percent, up from 8 percent in the third 
quarter of 2007.  Unemployment estimates for immigrant 
workers vary, but the Ministry of Labor and the National 
Statistics Institute's labor market survey agree that 
immigrant worker unemployment increased 24 percent in 2007 
from the year before and represents 11% of total 
unemployment. Media reports have drawn attention to this 
growing problem, highlighting the increasing number of 
immigrants on Spain's unemployment rolls.  According to 
recent State Public Employment Service (formerly INEM, 
National Institute of Employment) statistics there was a 
sixty percent increase in unemployment payments to immigrants 
in January compared with a year before. 
 
¶5. (U) In prior years, public opinion has been favorable 
towards immigration.  According to polls taken a year ago, 
Spain had the highest favorable opinion of immigration of all 
Western European nations (ref A).  However, the fear that a 
continued inflow of immigrants will exacerbate the 
unemployment situation is made real by recent Ministry of 
Labor statistics.  According to these statistics, Spain is 
still experiencing job growth, but the increasing number of 
entrants into the labor market (mostly immigrants) is greater 
than the market can sustain - resulting in higher levels of 
unemployment overall. 
 
¶6. (U) These concerns were highlighted during the election 
 
MADRID 00000373  002.2 OF 002 
 
 
campaigns this past March (ref B).  Opposition Partido 
Popular presidential candidate Mariano Rajoy proposed a hard 
line plan against immigration - including facilitating the 
return to their country of origin of those immigrants not 
finding employment within a month, and requiring immigrants 
to learn Spanish "customs".  This plan struck a chord with 
many Spaniards. 
 
¶7. (U) Although President Zapatero's campaign position was to 
highlight the value of diversity and immigrants to Spain, his 
electoral plan nonetheless was geared towards tightening 
Spain's borders against illegal immigration.  PSOE's 
"Programa Electoral" of 2008 included a four-year plan to 
improve border control, bolster the effectiveness of the 
Guardia Civil and National Police against illegal immigrants, 
improve cooperation between Spain, the EU institutions, and 
the immigrant countries of origin or transit countries, and 
strengthen the process for deporting illegal immigrants. 
 
¶8. (U) The government has also been looking at ways to 
address increasing levels of unemployment. The GOS recently 
announced efforts to work with labor unions and business 
associations to develop employment stimulus measures, 
particularly for lower-skilled workers.  These measures would 
include incentives to spur training in an effort to increase 
skill-set levels. These efforts are in the planning stages, 
and it remains to be seen what effect, if any, they will have 
on immigrant workers.  In recent conversations, Ministry of 
Labor officials have agreed that immigrant laborers generally 
possess few skills which are difficult to transfer to other 
areas should job loss occur. 
 
 
---------- 
Conclusion 
---------- 
 
¶9. (U) Immigration is a fairly recent phenomenon for Spain, 
and the country has changed rapidly from a homogenous country 
to a country with a significant level of diversity.  We may 
not see any drastic immigration policy changes during the 
current administration.  However, any increase in 
unemployment in the upcoming months will continue to push the 
theme to the political forefront. 
 
AGUIRRE