Alicante’s labor market continues to show mixed signals amid inflation and higher interest rates that threaten to slow activity. Recent data released this Thursday by the Department of Inclusion and Social Security indicate the state added 6,774 new jobs last month, bringing total employment to 730,322. This marks a second consecutive monthly gain in new registrations after a solid April start.
Unemployment figures also improved, with a drop of 2,394 people in May. According to the Ministry of Labor and Social Economy, the number of unemployed recorded at local public employment offices stood at 134,715, which is 8,707 fewer than a year ago and places Alicante at a low in registered unemployment not seen since October 2008, around 130,000 according to SEPE statistics.
Both indicators are slightly softer than their May figures from the previous year—May last year showed 9,156 more registrations and 3,243 fewer unemployed—yet it is important to note that April data often runs above the historical average due to seasonal contracts. This year’s numbers suggest a shift tied to labor reform, which urges employers to adjust usage from temporary to permanent contracts in many cases.
Salaries for people in Alicante are the third lowest in the country.
Looking at the sectoral distribution, the hospitality industry remains the most active, contributing 2,856 new jobs. However, its share of total hiring declined from 58% in April to 42% in May.
A few customers wait at a hotel reception, illustrating the ongoing demand in services. In brief, the boom in employment has been broad but uneven across sectors. Agriculture, for example, saw a small decrease in participation, while mining lost a handful of jobs. Administrative activities and utilities added 714 positions, manufacturing generated 681 new jobs, and trade increased by 543 roles. Education added 273 jobs, making up a notable portion of the growth.
Falling turnover and fewer contracts are consistent with the reform’s goal, reducing total contracts while preserving core employment. The trend implies that a shift away from long chains of temporary agreements is taking hold where workers are needed most.
Labor reform halves the number of people with more than ten contracts a year in Alicante
In May, a total of 44,501 contracts were signed, with 25,963 being permanent, accounting for 58.3% of the total.
From a gender perspective, female participation rose by 3,528 to a total of 3,247 men. The overall balance still shows more men employed than women, with 389,138 men compared to 341,183 women in the workforce.
An employment office in Alicante highlights the ongoing effort to match job seekers with opportunities amid a shifting labor market.
Finally, just over half of all unemployed registered with public employment agencies receive some form of Sepe benefit. In Alicante in April, 72,146 unemployed had some coverage: 29,627 received contributions, 36,392 received subsidies, and 6,127 benefited from active income support measures.
Looking at the broader regional balance, the Valencian Community saw a rise of 8,042 in Social Security contributors, reaching 2,094,941. This increase was more modest than Alicante’s, largely due to weaker data from Castellón and Valencia, which posted smaller gains and fewer new jobs respectively.
Ratings
Within the evaluation arena, unions expressed concerns about possible shifts in regional labor policy after recent elections. They urged the continuity of policies that have helped stimulate the economy and promote quality employment, stressing that the well-being of workers should not depend on political cycles.
Business groups acknowledged improvements in unemployment numbers but warned that worker shortages persist. They urged employers to improve working conditions and address informal employment to attract and retain talent.
The autonomous employers’ association noted a positive outlook from the unemployment data while arguing that Valencia’s improvement is still below the national pace. Some data challenges, including Castellón’s, were cited as affecting the regional picture, especially in energy-intensive industries facing higher production costs.
Social dialogue
At the institutional level, regional authorities emphasized ongoing reforms and the goal of positioning the Valencia Employment Service as a benchmark for service to people and the regional economy. The regional leadership described the latest figures as encouraging and underscored the importance of preserving social dialogue to sustain the more than two million jobs in the region.