Madrid has once again demonstrated its economic prowess, closing December as the autonomous community with the highest number of registered Social Security affiliates in Spain. This marks a significant milestone, as it’s the first time Madrid has surpassed Catalonia in total employment, despite having a million fewer inhabitants. This trend has continued into January, solidifying Madrid’s position as a leading economic engine.
The ‘Sorpasso’ Beyond Public Sector Employment
What makes this achievement even more remarkable is that Madrid’s lead over Catalonia holds true even when public sector employees are excluded from the figures. This directly challenges a long-standing argument put forth by various Catalan actors, including the influential Círculo de Economía, which has historically pointed to Madrid’s concentration of state public employment as a key advantage.
In a March report, the Círculo de Economía, chaired by Jaume Guardiola, highlighted Madrid’s benefit from a disproportionate concentration of state public employment, citing the presence of all ministries and other central government bodies. At the time of the report’s publication, Madrid had not yet overtaken Catalonia in total employment but was on the verge of doing so. This ‘sorpasso’ finally occurred in December 2025, and crucially, it extends to private sector employment.
Challenging the Narrative: Public vs. Private Employment
According to recently updated data from the National Institute of Statistics (INE), Catalonia ended 2025 with 496,300 public employees, a figure higher than Madrid’s 485,800. This means that Catalonia actually had more public sector workers than Madrid, despite the latter housing numerous ministries and central government agencies. This statistic directly refutes the Catalan nationalist argument that Madrid’s employment figures are artificially inflated by a large public sector.
The Social Security data for December further underscores this shift: Catalonia recorded 3.87 million total affiliates, compared to Madrid’s 3.88 million. More importantly, in private sector employment-excluding public employees-Catalonia had 3.37 million, while the Community of Madrid reached 3.39 million. This definitively shows Madrid’s lead in generating private sector jobs.
Catalonia’s Remaining Advantage: Self-Employed Workers
Currently, Catalonia only maintains a lead over Madrid in one specific area: the number of self-employed workers. The region, now governed by Salvador Illa (PSC), boasts over 570,000 self-employed individuals, whereas Madrid has 438,000. While significant, this sole advantage does not overshadow Madrid’s overall lead in total and private sector employment.
This latest economic ‘sorpasso’ follows Madrid’s earlier achievement of surpassing Catalonia in GDP. Madrid is now the region with the highest GDP in Spain and contributes the most to national solidarity. Now, it also leads in employment, even without factoring in public sector workers.
Political Implications and Fiscal Debates
This economic shift comes at a politically charged time. The central government has recently negotiated a new autonomous financing system exclusively with Catalonia and has announced intentions to approve national laws aimed at diluting Madrid’s tax cuts, particularly those accused of fiscal dumping. Catalonia has consistently argued that Madrid’s tax reductions foster unfair competition, attracting businesses and residents away from other regions.
The data, however, paints a different picture, suggesting that Madrid’s economic growth is robust and extends beyond fiscal incentives or a concentrated public sector. The region’s ability to generate private employment and attract businesses appears to be a broader phenomenon, driven by a combination of factors that are now yielding tangible results in the labor market.
As Madrid continues its upward economic trajectory, the debate over regional competitiveness and fiscal policies is likely to intensify. The latest employment figures provide strong evidence for Madrid’s economic vitality, challenging established narratives and setting a new benchmark for regional economic performance in Spain.
Source: okdiario.com
