This article locates training and development in Spain within the country's socio‐economic context. It maps the major changes which have been introduced into the training and development system since the briefing by Escardíbul and Llinas‐Audet published in this journal in 2010. It relates those changes to the ongoing economic crisis which began in 2009 and the growing emphasis on employers’ demands in the design of the training system. Finally, it identifies the challenges presented to Spanish policy‐makers by a number of weaknesses in the current system. The Spanish experience is particularly relevant for countries in which social partner involvement and a significant small and medium‐sized enterprise (SME) presence are important issues in the development of their training system. It is also particularly useful for those countries in Latin America whose training systems have been influenced by the Spanish model.