Factors driving sectoral and occupational employment changes during the Spanish boom (1995–2005)

Spain's economy grew at a real annual average rate of over 3.5% between 1995 and 2005. Total employment increased by more than five million. This process altered the sectoral and occupational structure of employment. The dynamics of final demand, technology and labour requirements linked to technology and labour market institutions mostly drive shifts in the structure of employment. We analyse their effects and relative weights on private employment growth in an input–output framework, by means of structural decomposition. The analysis of the occupational structure is a novelty. Sectoral and occupational structures of employment are receiving a great deal of attention: the productivity growth and economic prospects of service economies and the debate between skilling and polarization are, respectively, the main issues. This paper provides useful insights on the dynamics of the structure of employment during a process of vigorous job growth.