Tenerife Youth Unemployment Drops Sharply Amid Tech-Driven Economic Shift

Tenerife’s job market is undergoing a major shift, becoming a key driver for youth employment in Spain. According to March data from the State Public Employment Service (SEPE), unemployment among those under 25 on the island fell by 9.37% compared to last year—double the national decline of 4.58%.

This progress is part of a broader strategy to move beyond a reliance on the traditional service sector. By focusing on high-value industries like aerospace, technology, and audiovisual production, the Tenerife Island Council has helped create over 8,300 digital-sector contracts in the first quarter of 2026. This shift is backed by more than 140 million euros in infrastructure investment, aimed at turning the island into an innovation hub that keeps local talent at home.

Attracting foreign investment has been crucial to this success. Thanks to the work of the Science and Technology Park and the Technological Institute of Renewable Energies, the island is now home to over 100 companies, including global names like Samsung, Intel Capital, and Leonardo. These businesses now support nearly 15,000 jobs. Additionally, the local government has invested nine million euros in hiring incentives, including the Youth Guarantee, the New Employment Opportunities (NOE) project, and the Práctica Cabildo 2025 initiative, which has already helped 368 people find work.

Overall, Tenerife’s job market has seen a steady recovery since July 2023, with unemployment dropping by more than 11,000 people. There are currently 63,501 unemployed individuals on the island, a 7.19% decrease from last year. Hiring remains strong, with 26,851 new contracts signed in March—an increase of nearly 3,000 from the previous month—signaling continued growth for the island’s economy.