Share of total employment in each sector in Spain 1950-1973

Between 1950 and 1973, the Spanish economy grew significantly due to European integration and a boom in its tourism industry. Growth was initially slow in these years; however, Spain gradually became less isolated over the 1950s, and by the 1960s, the economy was booming. During this process, the economy shifted its priority from agricultural output to focus on industrial and service sectors (particularly tourism), which is reflected in the share of each sector in its total employment. In 1950, approximately half of all Spanish workers were employed in the agricultural sector, while this dropped to just 10 percent in 1973; over the same period, the share of workers in service sectors more than doubled, from 26 to 53 percent. To compare, in 2019, the share of those employed in agriculture was less than three percent, while those working in services made up 68 percent.

Slow recovery compared to the rest of Western Europe

Although the Spanish Civil War had largely concluded in 1939, the Second World War meant that the supplies needed for recovery were often unavailable. Franco's alignment with the Axis Powers meant that financial assistance was not available from the U.S. or its allies. This ostracization continued into the post-war period, as Spain's fascist government was excluded from the Marshall Plan, and in 1950, many sectors of the Spanish economy had still not recovered to their pre-civil war rates. In 1953, however, Franco's hardline, anti-communist stance had improved Spanish relations with the U.S., which opened a stream of American investment. The rest of the 1950s then became a transitional period for Spain's economy, which experienced growth but was often hindered by mismanagement and corruption.

Emergence of the tourism industry

Despite improving relations with the U.S., Spain remained isolated from the rest of Western Europe until the end of the decade. After this, trade barriers were gradually lifted, Spain joined international trade organizations and became an associate member of those in Europe, and tourism became a staple of the Spanish economy. In earlier decades, international holidays had been too expensive for most; however, increasing living standards in Western Europe and the affordability of air travel saw the number of tourists rise from four million in 1959 to 35 million in 1973.