Tenerife Emerges as Spain’s Second Most Dynamic Hub for Job Creation
Tenerife is diversifying its economy beyond tourism by fostering growth in high-value sectors like technology and engineering, resulting in record employment levels and the second-highest job creation rate in Spain.
Tenerife’s job market is evolving beyond its traditional reliance on tourism. According to a recent LinkedIn report, the island is now the second most dynamic region in Spain for job creation, trailing only Alicante and outperforming major economic hubs like Bilbao, Zaragoza, and Palma.
This growth isn't just a temporary hiring spike; it reflects a deeper shift toward retaining talent and demanding specialized skills. The island’s economy is becoming more resilient by expanding into high-value sectors such as engineering, strategic consulting, higher education, and digital transformation. These efforts are backed by strong economic data: by the end of 2025, Tenerife reached a record high of 443,450 employed people, with unemployment falling to 12.6%.
Technology companies are playing a key role in this transition. For example, the multinational firm Atos has operated in Santa Cruz for 25 years, now employing nearly 1,000 highly skilled workers to manage services for over 100 international clients. This growth is supported by local scientific infrastructure, including the Technological and Renewable Energy Institute (ITER)—home to the Teide and Anaga supercomputers—and strong partnerships with the University of La Laguna and the Canary Islands University Hospital.
The Cabildo de Tenerife views these results as the success of a deliberate strategy to boost innovation. Local authorities aim to attract investment by improving telecommunications and supporting science parks, while also ensuring that young professionals trained on the island can find competitive jobs locally rather than moving away.
The LinkedIn study also highlights a clear preference for hybrid work, with 79% of job postings offering flexible arrangements. Fully remote roles remain rare, accounting for only 0.2% of listings, showing that companies still value having employees in the office.
While tourism remains the island's primary economic driver, with 6.4 million foreign visitors, growth in construction (+5.5%) and industry (+3.1%) shows that Tenerife is successfully diversifying. The island is building a more balanced economic model that combines its strong tourism sector with a solid foundation in technology and knowledge-based industries.