Spain’s economy is showing clear signs of recovery, after a protracted recession. Despite these positive developments significant challenges remain. Spain has amongst the highest unemployment rates in the OECD and the Spanish economy was still smaller in 2014 than it was in 2007. While the future is by definition uncertain, all signs point to a world in which higher levels of skills will be increasingly critical for people’s success in the economy and society. Skills improvements are an important driver of employment, productivity, economic growth, and higher living standards. Fostering better and more equitable skills outcomes also provides the foundation for building a healthier, more equitable, and more cohesive society. The OECD Skills Strategy Diagnostic Report: Spain identifies 12 skills challenges for Spain. These challenges were identified through workshops with national and regional governments and stakeholders and through analysis of OECD, European Commission and national data. The first eight challenges refer to specific outcomes across the three pillars of developing, activating and using skills. The next four challenges refer to the 'enabling' conditions that strengthen the overall skills system. Success in tackling these skills challenges will boost performance across the whole skills system.