The Balearic Islands have closed out the third quarter with a snapshot of the labor market that is hard to ignore: lower unemployment, higher employment, and figures not seen at this time of year for nearly two decades. Between July and September, the islands created 26,900 jobs and reduced the number of unemployed by 10,000, bringing the total to 34,400 people, according to the Survey of Population Activity (EPA) published by the National Statistics Institute (INE).
The unemployment rate thus stands at 4.63 percent, after two consecutive quarters of decline. The number of unemployed people is the lowest in a third quarter since 2007, while the 708,700 people employed represent a record high for this same period.
This progress is especially significant when viewed from a broader perspective. Over the past twelve months, the Balearic Islands have seen 36,200 people enter the labor market – an increase of 5.4 percent – while the number of unemployed has decreased by 6,800, a reduction of 16.5 percent. At the same time, the labor force has grown by 29,400 people, reaching 743,100.
This latest figure is significant: not only are the islands creating jobs, but more people are also entering the labor market. Between July and September alone, the labor force grew by 17,000 people.
More jobs and stability
One of the key factors this quarter lies in the quality of hiring. The number of employees with permanent contracts increased by 26,500, compared with an increase of 6,300 in temporary contracts. In total, the Balearic Islands have 610,600 employees, of whom 538,100 have permanent contracts.
Expressed as a percentage, 88.1% of employees have permanent contracts, compared to 11.9% who have fixed-term contracts. This breakdown places contractual stability at the center of labor market developments in the Balearic Islands.
The full-time employment ratio is also increasing. In the third quarter, the number of full-time workers increased by 31,200 to 642,900. In contrast, the number of part-time workers decreased by 4,300 to 65,800.
The private sector was the main driver of job creation: it hired 23,000 workers, bringing the total number of employed people to 596,600. The public sector added another 3,900, reaching a total of 112,100.
Female unemployment plunges
Unemployment trends show notable gender differences. The number of unemployed women decreased by 10,900 during the quarter – a 39.6 percent drop – to 16,600. Among men, the decrease was more moderate: 900 fewer unemployed, a 5.3 percent drop, to 17,800.
Unemployment rates stood at 4.71 percent for women and 4.57 percent for men, according to the INE. Figures for young people also improved. Unemployment among those under 25 decreased by 2,600 people compared to the previous quarter, with a youth unemployment rate of 10.31 percent. Although the figure reflects a positive trend, this group continues to have a higher unemployment rate than the Balearic population as a whole.
By industry sector, the drop in unemployment was concentrated among those seeking their first job or who had been unemployed for more than a year, with 7,100 fewer people unemployed. The services sector recorded 4,200 fewer unemployed people.
The trend was different between industry and construction. Unemployment in industry rose by 1,100 people and in construction by 300. These figures should be understood in context, especially in sectors with lower levels of unemployment, where percentage changes can seem surprising.
The Balearic Islands are one of the regions that creates the most jobs.
The archipelago’s performance also stands out on the regional map. The Balearic Islands were the region with the second-highest employment growth during the third quarter, adding 26,900 new jobs, just behind the Canary Islands, which added 38,100. Galicia took third place, with 21,400 more jobs.
As for unemployment, the islands led the national decline, with 10,000 fewer unemployed people, followed by Castile and León, with 7,200, and the Canary Islands, with 4,300. In contrast, employment decreased in Madrid, Andalusia, and Aragon, while the number of unemployed people increased in the Valencian Community, Madrid, and Galicia.
The figures paint a picture of the Balearic labor market that continues to generate jobs and is reaching new employment records. The key question will be to determine to what extent this is the case.
