The Canary Islands have emerged as leaders in employment growth across Spain, setting a record of 940,689 Social Security affiliates and achieving the lowest unemployment rates in 16 years. The booming tourism sector, especially the hospitality industry, has been a significant driver of this positive trend.
Employment Growth Highlights
- Social Security Affiliations: The Islands registered 30,482 more affiliates in 2024, a growth of 3.35% compared to the previous year.
- This positions the Canary Islands as the autonomous community with the highest employment growth in Spain.
- Santa Cruz de Tenerife showed an impressive 3.57% growth, making it the second-best performing province in Spain, just behind Jaén.
- Unemployment: The number of unemployed decreased by 11,501 people (-6.85%) compared to 2023, leaving 156,344 job seekers, the lowest figure since February 2008.
Key Employment Sectors
- Hospitality:
- The hospitality industry became the top employer for the first time, overtaking commerce.
- 171,801 jobs were recorded in the sector, an increase of 7,331 over the previous year.
- Commerce:
- Second-largest employer, with 169,216 contributors, adding 3,679 new jobs.
- Health and Social Services:
- Significant growth, employing 98,543 people, a 5.5% increase with 5,189 new positions.
Regional Disparities
- Agriculture, Industry, and Construction:
- These sectors saw only marginal growth and continue to decline in overall economic significance.
- Self-Employed Workers:
- The number of self-employed workers rose by 3,811 to 144,543, representing 15.4% of the workforce.
Demographic Insights
- Gender Gap:
- Employed men (486,976) outnumber employed women (453,709) by over 33,000.
- However, women account for the majority of unemployed, with 89,138 female job seekers compared to 67,206 men.
- Age and Education:
- 60% of unemployed individuals are over 45 years old (97,669 people).
- 50% have only primary education (77,908 people).
- 46% of job seekers have been unemployed for over a year (72,409 people).
Tourism’s Role in Economic Growth
The exceptional performance of the tourism sector in 2024 significantly boosted job creation. The Canary Islands welcomed 13.7 million foreign visitors, contributing €20.644 billion to the economy. This influx has catalysed growth in multiple sectors, including transport and commerce.
Challenges Ahead
Despite the positive trends, unemployment remains a structural challenge for the Canary Islands. The high percentage of long-term unemployed and those with limited education highlights the need for policies aimed at upskilling the workforce and increasing inclusivity in the labour market.
The Canary Islands’ employment success in 2024 reflects the strength of its tourism-driven economy. However, tackling structural unemployment and promoting diversification across sectors will be crucial for sustainable growth in the coming years.
