Spain loses €45 billion to absenteeism crisis

Absenteeism at work is a costly and persistent problem for the Spanish economy. Lost productivity related to sick leave and other absenteeism will cost the country more than €45 billion in 2024 alone, according to new data.

The figures reveal that absenteeism now accounts for around 7 per cent of all agreed working hours, and this proportion continues to rise in most regions despite the broader economic recovery and falling unemployment rates.

Regional differences in lost working hours

Northern region leads ranking

Topping the national rankings are the Basque Country and the Canary Islands, both of which recorded absenteeism rates of approximately 9.1% in the first quarter of 2025. Cantabria follows closely behind with 8.7%, showing a worrying trend in northern Spain and the islands. Several factors contribute to this regional variation. Northern regions tend to have a higher proportion of industrial and manufacturing employment, where physically demanding and repetitive tasks can lead to increased absenteeism for health reasons. The Canary Islands’ seasonal labor market and dependence on the service sector also play a role, with temporary contracts often leading to increased short-term absenteeism.

Meanwhile, the Balearic region had the lowest absenteeism rate in the country, reporting a loss of just 5.6% of working hours. Madrid (6.2%) and Andalusia (6.4%) also performed relatively well. These regions benefit from a high concentration of service sector and office-based roles, with remote work options, flexibility, and preventive health measures helping to reduce absenteeism.

Economic and social impact

Billions of dollars in lost productivity

The estimated 45 billion euros in losses reflects not only the lack of working hours, but also the wider economic knock-on effects that followed. Reduced production, disrupted workflows, and the need to hire temporary replacement personnel can increase costs for employers and public agencies.

The economic impact of absenteeism currently amounts to around 3.5% of Spain’s gross domestic product (GDP), making it one of Europe’s most pressing labor market inefficiencies. For comparison, the average absenteeism rate across the EU is close to 5%, highlighting Spain’s particular vulnerability.

Small and medium-sized enterprises (SMEs), which account for more than 99 percent of Spanish companies, have been particularly affected. With fewer staff available to cover absenteeism, many small businesses experience lost contracts, delayed deliveries, and decreased customer satisfaction.

In sectors such as logistics, healthcare, and hospitality, business owners are reporting increased struggles to maintain staffing levels. This has led some companies to adopt attendance-based incentive schemes and invest more heavily in workplace benefits programs to counter this trend.

Causes behind growth trends

Health, stress, and the changing workplace

Experts have identified multiple factors behind Spain’s high absenteeism rate. Mental health issues, stress and musculoskeletal conditions remain the leading causes of medical leave. The post-pandemic shift to hybrid work has blurred the line between work and rest, leading to burnout and longer recovery periods for many employees.

Spain’s generous sick leave policy, combined with relatively high employment protection for full-time employees, may in some cases unintentionally encourage absenteeism. On the management side, official leave periods are often extended due to delays in medical examinations and renewal of sick leave certificates.

Cultural attitudes also play a role. Research shows that around 40% of Spanish workers believe their colleagues are taking advantage of their sick leave, while a similar proportion admit they feel pressured to come to work even when they are unwell, and this contradiction continues to shape workplace culture.

Important points

• Spain will lose more than €45 billion due to absenteeism in 2024, equivalent to around 3.5% of GDP.
• Average rate: 7% of the agreed total working hours.
• The Basque Country, Canary Islands and Cantabria have the highest rates.
• The Balearics, Madrid and Andalusia report the lowest rates.
• Health issues, workplace stress, and inefficient bureaucracy are the main factors.
• Small and medium-sized businesses face the most severe impact from talent shortages.

Aiming for a healthier and more efficient workforce

Addressing absenteeism requires 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.

Employers may need to shift their focus from monitoring attendance to improving engagement and benefits. Companies that encourage open communication, flexible scheduling, and mental health support tend to report lower absenteeism rates and higher productivity. Absenteeism is not just a labor market statistic, it reflects a country’s social and economic health. Addressing its root causes will require sustained collaboration between governments, businesses and workers, with investments that could ultimately return billions of dollars to Spain’s economy and strengthen the resilience of its workforce.