The pandemic had a significant impact on Alicante’s economy, yet the province managed a notable rebound despite inflation pressures and the complex global backdrop shaped by the war in Ukraine. Employment recovered to levels previously unseen, with the public sector taking the lead and now reporting 34,300 more jobs than in 2019. The rise is linked to formal contracts issued to address the health crisis in services and to workforce placement initiatives supported by the European Union. These measures directly boosted public employment, while the private sector struggled to gain momentum, adding only 6,500 jobs during the same period.
The latest figures from the Valencian Statistical Institute, derived from the Active Population Survey, show that in the last quarter there were 696,300 employed people in Alicante. Compared with the pre-pandemic situation in 2019, employment rose by 40,800. Notably, after a sharp decline during the worst moments of the crisis, public employment climbed from 114,800 to 148,900, a 30 percent increase. The private sector grew more slowly, from 540,900 to 547,400, a modest 1 percent. By the end of 2022, private employment even surpassed public employment, a shift attributed to the Christmas season and stronger activity in hospitality and retail. This balance underscores how seasonal demand can temporarily tilt the employment mix in favor of the private sector.
End of Christmas campaign destroyed almost 12,000 jobs in Alicante in worst January in eleven years
In terms of occupational trends, private sector participation remains higher than in 2019, with a 7.8 percent increase bringing overall private employment to 624,055. Public employment also rose, reaching 84,497 with a 20 percent gain. These dynamics reflect a resilient labor market where both sectors contribute to overall stability even as economic headwinds persist.
Rocío Briones, Director-General of Employment and Education, notes that reinforced health, social services, and education during the pandemic align with the regional government’s broader objective of offering stronger public services and programs. These measures aim to help disadvantaged groups, including women, youth, and workers over 55, enter or re-enter the workforce. Briones emphasizes that the rise in public employment mirrors gains in private employment, signaling that the economy is at historically high occupancy levels despite ongoing fluctuations.
Unions express similar views. Yaissel Sánchez, secretary of UGT for l’Alacantí-Les Marines, argues that the crisis intensified care for citizens and expanded active employment policies, a trend that must be continued while maintaining a balance with private sector needs. Paco García, CC OO’s regional secretary, points out the negative consequences of past attempts to shrink the public sector to bolster private enterprise. He attributes much of the current stability to EU pressure and acknowledges that the path toward the European average remains long, yet progress is evident.
14% of shoe companies expect to increase turnover by 5% to 6% in 2023
Private sector hesitancy persists as firms face uncertainty and rising production costs. Leaders in the regional industry, including Luis Rodríguez, president of the Alicante State Federation of Metal Companies, and Marián Cano of the Valencia Shoe Entrepreneurs Association, report that activity has not fully recovered. A survey by Avecal shows only 14 percent of member companies expect turnover gains of 5 to 6 percent this year, while 25 percent foresee a 1 percent rise. The message is cautious growth amid volatility in raw materials and energy prices. The sector remains watchful as markets swing.
Meanwhile, technicians and skilled workers emerge as the strongest growth group across both sectors, reflecting a clear demand for higher-skilled labor. In private activity, the number of technicians rose from 98,600 to 103,200, while skilled workers increased from 275,400 to 281,600 by late 2022. On the public side, technicians grew from 22,200 to 39,600 in the first segment and from 62,500 to 77,000 in the second. These shifts highlight a broader trend toward more specialized roles as the economy evolves.