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Unemployment falls by 5.5% in the Canary Islands but has stagnated in south Tenerife

Unemployment falls by 5.5% in the Canary Islands but has stagnated in south Tenerife

Unemployment in southern Tenerife has remained virtually unchanged over the past year, despite the Canary Islands recording a 5.5% fall in overall unemployment during the same period.

Figures from the Canary Islands Employment Observatory (Obecan) show that the region entered the summer with 16,933 people registered as unemployed, compared with 16,991 a year ago, highlighting a stagnation in the local labour market.

The figures stand out because southern Tenerife is one of the Canary Islands' main tourism hubs, welcoming around five million visitors last year, the vast majority from overseas.

Tourism Rebounds After April Dip

The employment slowdown follows a difficult April for the tourism sector, when the Canary Islands experienced an 8.3% drop in international visitors compared with the previous year. It was the sharpest decline since October 2019, excluding the tourism shutdown during the COVID-19 pandemic.

However, the picture improved in May, with international arrivals increasing by 0.53% year-on-year.

Tourist spending also continued to grow, reaching €1.55 billion, an increase of 2.44% compared with May 2025, meaning visitor expenditure is still rising faster than visitor numbers.

Summer Hiring Picks Up

June brought a seasonal boost to recruitment across the south of Tenerife, with employers signing 10,264 new employment contracts, 2,293 more than in May.

The increase was particularly noticeable in the island's main tourist municipalities.

Adeje Leads New Recruitment

Adeje recorded the highest number of new contracts, with 3,999 signed during June, an increase of 1,096 compared with May. Other municipalities also saw strong growth:

  • Arona: 2,679 contracts (+809)
  • San Miguel de Abona: 927 (+149)
  • Granadilla de Abona: 911 (+175)
  • Candelaria: 378 (+9)
  • Guía de Isora: 334 (+91)
  • Santiago del Teide: 266 (+25)
  • Arafo: 251 (+24)

Some Areas See Declines

Not every municipality experienced growth. The number of new contracts fell in:

  • Güímar: 324 contracts (-51)
  • Arico: 155 (-32)
  • Fasnia: 19 (-2)

Meanwhile, Vilaflor de Chasna remained unchanged, with 21 contracts signed during June.

Labour Market Still Lags Behind Regional Trend

Although recruitment typically increases at the start of the summer tourist season, the latest figures suggest that this has yet to translate into a significant reduction in unemployment across southern Tenerife.

While the Canary Islands as a whole continue to see unemployment fall, the south of Tenerife's labour market remains largely unchanged, despite tourism showing signs of recovery following April's slowdown.

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