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Informe Fènix reopens the debate on immigration, wages and welfare in Catalonia

Catalonia is once again discussing an uncomfortable question: why the economy grows but many people do not feel they are living better. The new Informe Fènix, prepared by a group of Catalan economists, points to a productive model overly reliant on low-value-added sectors, tight wages and a strong dependence on low-skilled labour.

The document, coordinated by Xavier Roig and with the participation of experts such as Xavier Cuadras, Modest Guinjoan and Miquel Puig, arrives amid the budget debate and has generated an immediate reaction. Its most controversial thesis is that immigration does not always act as an engine of wellbeing and that, if it is concentrated in low-productivity, low-paid jobs, it can put pressure on the welfare state.

Its proposals include far-reaching measures: limiting tourism capacity, reducing holiday-apartment licences, raising the minimum wage and steering immigration towards more productive or qualified profiles. The underlying idea is to change the type of growth, rather than merely increasing employment or GDP figures.

But the diagnosis is not shared by everyone. Other economists and international bodies maintain that immigration has been key to sustaining recent growth, filling vacancies and offsetting the ageing of the working population. Without foreign workers, sectors such as hospitality, food industry, care, logistics or delivery would have much greater difficulty operating.

The clash of interpretations is at the heart of the debate. For the report's authors, the problem is not only how many people arrive, but under what conditions they enter the labour market and what type of economy is built around those jobs. For their critics, blaming immigration may oversimplify a problem also linked to wages, housing, business productivity, training and public policy.

The fiscal issue adds another layer. The Informe Fènix warns that certain low-paid jobs do not generate sufficient public revenue to cover all the associated services. Other experts respond that many immigrants arrive as adults, enter the labour market quickly and contribute through taxes and social security contributions without having gone through the entire education cycle funded by the state.

At heart, the debate is less about immigration in the abstract and more about the economic model Catalonia wants for the coming years. An economy can grow with more employment, more tourism and more consumption, but if that growth rests on low wages and ever more expensive housing, the improvement does not reach households equally.

The Informe Fènix has had an impact because it addresses a tension that is very present in Barcelona and throughout Catalonia: the distance between the major economic figures and daily life. The challenge will be to discuss it without falling into easy headlines. Neither does immigration alone explain the problems of wellbeing, nor can it be ignored that the labour market needs better rules so that growth does not simply mean working more, earning little and living worse.