Tenerife Unemployment Hits 18-Year Low Amid Economic Diversification

Tenerife’s job market has seen a major turnaround over the past year. According to the State Public Employment Service (SEPE), the number of unemployed people in June fell to 61,707—the lowest figure in 18 years. Data from the Canary Islands Institute of Statistics (Istac) shows that unemployment is now at its lowest point since before the 2008 financial crisis. Over the last three years, the number of unemployed people has dropped by 12,597, marking a 17% decrease since mid-2023.

This shift reflects a change in how the island’s economy works, with local authorities focusing on diversifying into higher-value sectors. Cabildo President Rosa Dávila attributes this progress to the growth of the island’s research and innovation ecosystem, which now includes 3,356 companies. Since July 2023, more than 260 new businesses have opened, supporting over 40,000 direct jobs. This includes a net increase of 5,400 roles in fields like innovation, biomedicine, and aerospace.

Hiring has also been strong, with 27,915 new contracts signed in June, surpassing the figures from the same time last year. Youth unemployment is a particular success story, having fallen by 7.6% since July 2023. At 13%, the unemployment rate for those under 25 in Tenerife is well below the national average of 24.5%.

To keep this momentum going, the Cabildo has invested over nine million euros to help young people find work. Through initiatives like the Youth Guarantee, the New Employment Opportunities (NOE) project, and the Práctica Cabildo 2025 program—which has already helped 368 people find jobs—the government is working to ensure that academic training matches the needs of growing industries. Additionally, 3.7 million euros in subsidies have been set aside to help 160 recent graduates enter the workforce. Efraín Medina, the Minister of Employment, Education, and Youth, hopes these efforts will prevent "brain drain" and keep the island’s economy competitive.