Tenerife Launches Labor Reform Initiative as Unemployment Hits 20-Year Low
Tenerife officials and the UGT union have launched a collaborative initiative to improve job quality and address structural economic barriers following a significant decline in the island's unemployment rate.
Tenerife’s labor market is at a turning point, prompting Coalición Canaria and the UGT union to launch a working group aimed at reshaping local employment policies. As part of the "Tenerife Needs You" initiative, the focus has shifted from simply creating jobs to improving their quality—a move officials say is essential to addressing the island's long-standing economic gaps.
Recent data shows a positive trend in hiring. By the end of June, the number of job seekers on the island had fallen to 61,707—the lowest level in nearly 20 years. This marks a year-on-year decrease of 3,028 people and continues a downward trend that has seen unemployment drop by 12,597 individuals (17%) since the summer of 2023. Youth unemployment has seen the most significant improvement, falling from over 36% to 13% within the last year.
Despite these gains, Canary Islands government spokesperson Alfonso Cabello and Tenerife’s Minister of Human Resources, Juanma Santana, emphasized that economic growth must now lead to better living conditions. The government’s goal is to boost productivity and job stability to ensure the recovery does not rely on precarious, short-term work.
Union representatives, led by UGT Canarias Secretary General Manuel Navarro Ramos, argue that this new labor model depends on solving broader societal issues. They identified housing, transportation, and the quality of public services as the primary obstacles preventing workers from fully benefiting from the current economic climate. The union specifically highlighted the housing crisis as a major barrier to retaining talent and supporting the well-being of the workforce.
This dialogue between the island’s administration and labor leaders aims to create a long-term roadmap that addresses issues like labor taxation and absenteeism. Coalición Canaria has confirmed that the discussion will continue through a series of meetings in the coming months, with the goal of turning these proposals into coordinated government action.