Localized “Bleeding” Beneath Overall Growth
According to a report from Spain’s Association of Self-Employed Workers (UPTA), the total number of self-employed individuals registered under the Special Regime for Self-Employed Workers (RETA) reached 3,463,749 by the end of August 2026. This figure represents an increase of 1,067 in August alone and a cumulative rise of 58,044 over the past year, marking a 1.70% year-on-year growth.
However, this seemingly positive overall growth masks a severe sectoral divergence. Data shows that Spain’s traditional sectors are facing significant contraction pressure. This phenomenon of quantitative but not qualitative growth has raised concerns about the sustainability of local economies and employment.
Traditional Retail and Hospitality Hit Hardest
The data indicates that retail and hospitality are the sectors with the most significant losses. In August, the number of self-employed individuals in retail decreased by 912, falling below the 650,000 mark to 649,236. Simultaneously, the hospitality sector lost 939 self-employed workers. Combined, these two sectors alone saw a reduction of 1,851 self-employed individuals in a single month.
Furthermore, the manufacturing and education sectors were not spared. Manufacturing saw a decrease of 288 self-employed individuals in the same month, while the education sector lost 625, largely due to the seasonal effects of the summer holidays. UPTA points out that the continuous decline of traditional small businesses is particularly damaging to rural areas and small municipalities, not only weakening the local economy but also potentially making it harder for residents to access essential goods and services.
Construction and Professional Services Lead Growth
In stark contrast to the decline in traditional sectors, some industries are showing strong growth momentum. Construction was a standout performer in August, adding 1,072 self-employed workers and bringing its total to 417,078, making it a primary engine of growth.
The professional, scientific, and technical activities sector also maintained a positive trend, adding 531 professionals to reach a total of 355,835. Additionally, transport, health and social services, and agriculture all saw modest increases of 145, 45, and 27 individuals, respectively. This trend of growth concentrated in a few sectors indicates that the structure of Spain’s self-employed economy is undergoing a profound transformation.
Industry Association Urges Focus on Business Environment
UPTA President Eduardo Abad has issued a warning, arguing that one should not be overly optimistic about the overall situation based solely on the national increase of 58,000 self-employed workers. He emphasizes that for many small and micro-enterprises, the current predicament is that costs are rising much faster than profits.
Issues such as squeezed profit margins and difficulties in generational succession are plaguing a large number of traditional businesses. UPTA calls on the government to implement more effective measures to improve the survival and development environment for existing businesses, with a particular focus on supporting local commerce to prevent the continued decline of traditional sectors, thereby protecting employment, consumption, and the long-term vitality of entire communities.
