Alicante has again posted weak data for the labor market. Although the season is bringing more activity to the tourism sector, which accounts for the province’s largest share, growth in other sectors slowed due to the usual vacation lull in Social Security and a rise in registered unemployment. This year followed the same pattern.
Data released by the government on Monday show that Alicante lost 8,939 jobs last month, bringing the total number of contributors to 733,099. The decline mirrors the August figure from the previous year. Social Security counted 9,059 fewer registered workers, a number notably lower than pre-pandemic levels for this time of year. In the past, the summer vacation period typically wiped out between 11,000 and 15,000 jobs.
Unions have consistently linked this drop to the completion of temporary contracts during the holiday period, as factories and other businesses delay holiday payrolls.
Tourism drives employment trends in the state for the fourth straight month
In this context, the latest data indicate that manufacturing was the largest casualty, averaging 4,344 fewer workers. Education also trimmed staff by 2,520 amid the tail end of July activities at institutes and universities.
Another notable decrease occurred in formal employment structures, with 1,655 fewer contributors, aligning with disruptions caused by holiday breaks.
Overall, the decline in affiliates affected almost all segments with only a few exceptions. Hospitality continued to add jobs, employing 342 more people, while public administrations rose by 334. The health sector added 1,351 jobs, helped by renewed holiday contracts in the city with the strongest renewal activity.
The six-month stretch of robust job creation in Alicante ended as the number of affiliates fell, yet the province still posted a yearly positive trend with 22,253 more people working than in August last year. A significant dip occurred in the contribution plans for other employment types, reducing wage earners by 8,392. Self-employment edged down by 561, leaving the total at 140,332.
Unemployment data also reflected weak membership. Registered unemployed rose by 1,059, reaching 131,950, according to statistics from the Ministry of Labor and Social Economy. Despite the increase, the year-over-year figure remains 10,418 lower than a year ago.
In August, 32,703 new contracts were recorded, an 18% decrease from the same period last year. Of these contracts, 50.2% were temporary and 49.8% permanent. In the first months of the year, the permanent contract rate had stood at 55.12%.
Alicante breaks employment records and unemployment falls to 12.67%, the lowest since 2008
July brought some form of relief, with 75,215 unemployed people benefiting from support in September. Of these, 34,400 received contributions, 34,762 subsidies, and 6,053 benefited from Asset Addition Income.
Ratings
Despite the negative figures, unions argue the numbers would have been worse without labor reform. The CC OO representative for l’Alacantí i les Marines termed it the worst August in years and suggested that changes reduce the abuse of temporary employment, particularly in tourism, while noting that recruitment has stabilized. The UGT regional secretary echoed similar sentiments, praising improvements in employment quality and wage prospects.
Employer associations claim the data reflect challenges in the business structure and warn this could dampen economic activity and job creation due to rising costs and softer demand, both domestic and foreign. They view the current regulatory environment as a source of uncertainty for business decisions.
Finally, the new regional Employment Minister noted that the August uptick in unemployment is a seasonal pattern tied to the summer campaign’s end, while concern remains about potential effects from delayed Imserso aid and its impact on Valencia’s tourism-heavy economy.
Autonomous data
Regionally, the Valencian Community posted a membership loss of 27,199, leaving 2,078,479 contributors. The largest regional drop occurred in Valencia province with 15,856 fewer contributors, followed by Castellón with 2,405 fewer. Registered unemployment rose by 3,190 to 329,391.
Source attribution: Ministry of Labor and Social Economy, regional employment statistics, and government data releases.