Spain's increasing economic problems have led to a shrinking population. The country's National Statistics Institute stated that in the year to February 1st, Spain's total registered population fell by 205,788. Analysts attribute much of this decline to immigrants fleeing the country amid high unemployment and the bursting of the property bubble. There was also a sharp rise in the number of Spaniards leaving the country in search of work abroad. This brain drain represents a fall in the pool of qualified and skilled workers in the event of the economy picking up pace again. Albert Esteve, a demographics expert, explained why people are leaving, saying: "Spain is less attractive because there are no jobs."

Spain's economic woes are putting a huge social cost on all sectors of society. The middle class in particular is suffering badly. The capital, Madrid, is seeing increasing numbers of university-educated and professional people sleeping rough. Samur, a charity for the homeless, said 25 per cent of those sleeping on the streets completed some kind of higher education. It also revealed that over 40 per cent of them are homeless as a result of losing their job. The charity also reports that homelessness has not dented enterprise. Many of those who lost their regular work are trying to make ends meet by collecting and selling scrap metal, becoming street artists or putting their musical skills to good use by busking.