Canary Islands Experiences Modest Rise in Unemployment Figures for October

As the month of October came to a close, the Canary Islands reported a total of 147,679 individuals registered as unemployed. This figure marks an increase of 2,306 from September, translating to a monthly percentage rise of 1.59%, as per the latest data released by the Ministry of Labour. This uptick in unemployment is noteworthy, especially as it follows a period of relative stability in the job market.

Employment Contracts: A Mixed Bag

In October, the region saw a total of 70,445 employment contracts signed, which represents an increase of 3,004 contracts compared to the previous month, indicating a monthly growth rate of 4.45%. However, when juxtaposed with the same month in 2024, this figure reflects a decline of 1,773 contracts, or 2.46% year-on-year. Among the contracts signed, 30,191 were permanent, while 40,254 were temporary, highlighting a continuing reliance on short-term employment arrangements.

In a more encouraging development, the number of long-term unemployed individuals saw a decrease of 0.70% from September. More significantly, there was an impressive drop of 8.50% compared to October 2024. Isabel León, the Deputy Minister of Employment, emphasized that these figures represent the best outcomes for long-term unemployment in over a decade, suggesting a positive trend in job stability for many.

Understanding Unemployment Trends

The overall decline in registered unemployment across the Canary Islands has been notable, with a total reduction of 11,819 individuals, equating to a 7.41% decrease on an annual basis. José Ramón Rodríguez, the General Director of Labour, explained that the slight monthly increase in unemployment is a typical seasonal trend. This rise often coincides with the conclusion of the summer season and the subsequent end of temporary contracts that are prevalent during the peak tourist months.

Demographic Breakdown of Unemployment

Approximately one-third of the unemployed individuals in October were those seeking their first job, indicating a significant influx of new entrants into the job market without prior work experience. In terms of regional distribution, the province of Las Palmas recorded 76,368 unemployed individuals, which is an increase of 803 or 1.06%. Meanwhile, Santa Cruz de Tenerife reported 71,311 unemployed, rising by 1,503 or 2.15%.

Year-on-year comparisons reveal a decrease in unemployment of 7.24% in Las Palmas, translating to 5,961 fewer individuals, and a 7.59% reduction in Santa Cruz de Tenerife, with 5,858 fewer unemployed. These statistics reflect a broader trend of improving employment conditions in the region, despite the recent monthly uptick.

Gender and Age Dynamics in Employment

In October, women accounted for 49.65% of all contracts signed, reflecting a 4.83% increase from the previous month. Men represented 50.35% of the contracts, which is a 4.09% rise. Notably, unemployment rates among younger individuals under 25 have decreased by 9.65 points compared to 2024. For those aged 25 to 45, the decline was 8.61%, while individuals aged 45 and older experienced a reduction of 6.57% year-on-year.

Sector-Specific Unemployment Insights

A closer look at sector-specific trends reveals that the most significant year-on-year decline in unemployment occurred in the primary sector, which saw a reduction of 12%. This was closely followed by construction, which experienced an 11.84% decrease, and commerce, which saw a decline of 6.82%. Notably, unemployment among individuals with no previous work experience fell by 12.13% compared to 2024, indicating a positive shift in opportunities for new entrants into the workforce.

The hospitality sector emerged as a leader in contract formalizations, accounting for 34.65% of all contracts with a total of 24,408. This represents a 5.80% increase from September and nearly a one-point rise from October 2024, underscoring the sector’s resilience and importance to the local economy.

Unemployment Benefits and Their Impact

As of the end of September, there were 19,119 applications for unemployment benefits submitted in the Canary Islands, with 17,533 of these approved within an average processing time of just 0.66 days. This efficiency resulted in a total of 68,191 recipients of unemployment benefits, with expenditures surpassing 98 million euros, averaging 993 euros per recipient. This financial support plays a crucial role in sustaining individuals and families during periods of unemployment, contributing to the overall economic stability of the region.

Key points

• The Canary Islands had 147,679 registered unemployed individuals at the end of October.
• Employment contracts signed in October totaled 70,445, up by 4.45% from September.
• Long-term unemployment decreased by 0.70% from September.
• Unemployment in the Canary Islands fell by 11,819 individuals year-on-year, a 7.41% decline.
• Women received 49.65% of contracts signed in October.
• The hospitality sector accounted for 34.65% of all contracts.
• Unemployment benefits exceeded 98 million euros by the end of September.