Employment Trends in the Canary Islands Show Growth Amid Structural Concerns
The job market in the Canary Islands is on the rise, reaching record levels of employment despite warnings about underlying issues that could jeopardise this progress. In June, the region reported an increase in social security registrations and a decrease in unemployment, a trend described as “very positive” by the Santa Cruz de Tenerife Chamber of Commerce. However, the chamber cautions that maintaining these numbers hinges on addressing chronic deficiencies, such as a lack of skilled labour and high absenteeism impacting productivity.
Chamber President Santiago Sesé emphasised the need for intervention in the job market to prevent stagnation. He highlighted immediate challenges, including the shortage of qualified professionals, aligning training with employer needs, and reducing absenteeism, particularly among small and medium-sized businesses. The Chamber advocates for closer collaboration among public authorities, the healthcare system, and insurance bodies to streamline medical review processes.
The Chamber also stated that employment is a key pillar of the regional economy. “Data continues to show that job growth is one of the main drivers of the Canary economy, sustaining high levels of activity and consumption,” said Sesé. While tourism remains a principal factor, other sectors are increasingly contributing to this growth. To sustain current employment levels, further improvements in professional training and adapting education to industry needs are crucial, along with measures to tackle absenteeism. Sesé further insisted on the importance of enhancing worker training to meet the challenges posed by digital transformation and competition.
Unemployment Data Points to Broad Declines
June statistics reveal a decrease in unemployment in the Canary Islands, with 2,189 fewer jobless individuals, a 1.5% drop from May, bringing the total unemployed to 142,409. This decline benefits both men and women, affecting all age groups, including those under and over 25.
Compared to June 2022, unemployment has decreased by 8,295 individuals, marking a 5.5% drop that exceeds the national average reduction of 4.7%. All productive sectors contributed to this decline, especially agriculture, which saw a 12% drop, and construction with 9.5%. However, the services sector led in employment creation, reducing the unemployed by 6,122 over the past year.
In June, specific sectors such as commerce (510 fewer unemployed), public administration (500 fewer), hospitality (348 fewer), and construction (172 fewer) recorded significant job losses. Conversely, sectors such as publishing, broadcasting, and education saw unemployment rise, mainly due to seasonal effects at the end of the academic year.
Steady Increase in Social Security Affiliations
The number of individuals registered with social security in June saw a steady but modest increase, adding 960 new members for a 0.1% monthly rise. This contrasts positively with last year’s increase of only 60 new affiliates in the same month.
Canary Islands’ social security registrations remain historically high at 964,931, with 26,704 new contributors in the past year, reflecting a 2.8% annual growth, matching the national trend.
The breakdown of June’s affiliations shows positive trends across various contributions. The general regime added 115 members from May, while the Special Regime for Self-Employed Workers (RETA) saw an increase of 277. Additionally, the special maritime regime noted a significant addition of 357 members, with the domestic workers’ sector adding 186 and the agricultural sector experiencing a slight increase of 25.
