The Alicante labor market is continuing to show signs of activity, though inflation and higher interest rates remain a drag on momentum. Data released this Thursday by the Department of Inclusion and Social Security indicate that 6,774 new jobs were created in the province last month, bringing total employment to 730,322. This marks the second consecutive month of job gains after a strong April performance.
Unemployment figures also improved, with a drop of 2,394 people in May. The Ministry of Labor and Social Economy reports that the number of people registered as unemployed at public employment offices in the province stood at 134,715.
In both cases, the month’s results were slightly below the year-ago figures for May, when unemployment fell by 3,243 and employment rose by 9,156. It is worth noting that April figures tend to be higher than the historical average, reflecting seasonal contracts that have been showing up this year. The shift may relate to the effects of labor reform, which requires employers to distinguish between temporary and permanent contracts, moving away from the older practice of relying on temporary contracts to cover ongoing roles.
Salaries for workers in Alicante are among the lowest in the country
Looking at the distribution by sector, the hospitality industry remains the most attractive employer, adding 2,856 positions. However, its share of total openings has declined, accounting for 58% of new hires in April and 42% in May.
On a typical day at a hotel, guests line up at reception as the industry continues to rebound. The broader picture shows that most of the year’s gains came without major interruptions, with agriculture posting a small decline in participation and mining reducing payroll by a few roles.
Conversely, the administrative activities and utilities sector added 714 jobs, manufacturing added 681, and trade boosted employment by 543. The education sector contributed 273 new positions, while the construction sector grew with a noticeable impact on overall employment. The structure of hiring has been reshaped by the reform, with fewer total contracts and a shift toward more stable types of employment. This shift reflects a decrease in turnover and a reduced reliance on a chain of temporary contracts that previously covered similar roles.
Labor reform halves the number of people with more than ten contracts a year in Alicante
May saw 44,501 contracts signed, with 25,963 of them permanent, making up 58.3% of the total. Women continued to drive job growth, adding 3,528 contributors to Social Security, surpassing the 3,247 new male contributors. The overall gender gap remains in the workforce, with 389,138 working men compared to 341,183 women.
Additionally, just over half of all unemployed individuals registered with public employment agencies receive some form of Sepe benefit. In Alicante during April, 72,146 unemployed people had some coverage, including 29,627 who received contributions, 36,392 who received subsidies, and 6,127 who benefited from active income measures.
Regionally, the Valencian Community saw an increase in Social Security contributors of 8,042, reaching 2,094,941. This rise was smaller than the gains in Alicante or the national totals, largely due to weaker numbers in Castellón, which lost 1,179 participants, and Valencia, which recorded 2,447 new jobs.
Overall, the current data illustrate a labor market that is recovering with notable sectoral shifts. The ongoing impact of the reform appears to be a key factor influencing contract types and turnover, while employment growth remains concentrated in services and administrative sectors. These patterns help explain the gradual increase in total employment and the continued but uneven improvement in unemployment figures across the region. (Source: Department of Inclusion and Social Security; Ministry of Labor and Social Economy.)