MADRID (Reuters) – Spain plans to calm down work allow guidelines for foreigners, its social safety and migration minister mentioned on Friday, in search of to handle labour shortages in key industries corresponding to tourism and building that threaten its financial restoration.

The federal government intends to grant extra non permanent visas for sectors that want staff, Jose Luis Escriva advised reporters. Labour shortages have been reported within the tourism, agriculture, building and expertise industries.

“We’re evaluating completely different features of the migration legislation and the place there’s room to enhance it … with the intention to deal with bottlenecks in Spain’s labour market,” he mentioned.

Spain’s tourism trade has seen a robust rebound however firms are struggling to search out staff keen to attend tables and clear lodge rooms, in keeping with studies from enterprise organisations and consultancy S&P World (NYSE:).

Employees shortages have additionally been reported in fruit orchards and on building websites.

Friday’s S&P month-to-month buying managers survey confirmed that though the service sector reported stronger demand in Might, companies have been unable to develop as quick as anticipated due to issues discovering staff.

“Hiring further employees got here at a price within the type of greater wages being paid,” S&P mentioned.

Labour shortages additionally threaten European Union-funded initiatives value billions of euros that the federal government is relying on to get the financial system again to its pre-COVID degree.

Spain’s financial system was the toughest hit within the euro zone by the pandemic, shrinking 11% in 2020.

Although unemployment remains to be excessive, at 13.65%, the pandemic inspired extra staff into the formal financial system as official contracts have been wanted to gather furlough funds.

Consequently, formal employment has reached a report excessive, inflicting shortages in some areas.

Spain already has migration programmes with international locations corresponding to Morocco, Ecuador and Colombia and is open to extending non permanent work visas to different Central America international locations. A brand new pilot programme began with Honduras earlier this yr, sources advised Reuters.