The revival in Gezi after the pandemic downturn is reshaping the job market. The sector is eyeing June with expectations of a summer rebound that has already sustained three consecutive months above pre covid levels, and firms anticipate stronger demand. Job creation continues to advance, nudging toward all time highs as tourism activities gain momentum.
Across various tourism subsectors, June closed with 2.619 million Social Security contributors, a record for the month. Social Security reported its strongest June ever, surpassing June 2019 when 2.617 million workers were recorded, and nearing the August 2019 peak of 2.626 million, according to records from the Ministry of Social Security and Industry, Trade and Tourism.
In the last year, the tourism industry added 331,555 jobs, a 14.5 percent rise. More than 40 percent of all new jobs since June last year, totaling 813,828 new Social Security members, were in the tourism sector, underscoring its central role in the recovery and the broad-based demand for travel and related services.
Industry, Trade and Tourism Minister Reyes Maroto highlighted that the first half employment increase in tourism reached historic levels, with an average of 53,000 new jobs each month. He noted that vaccination efforts, together with the postponement mechanism and the social shield, have proven effective in reviving tourism, a move supported by government action to protect jobs and sustain businesses.
Employment rose across all tourism branches. The hotel sector added 238,422 participations, with 149,995 in food and beverage services and 88,427 in accommodation services. Other tourism activities expanded by 87,649 workers, and travel agencies added 5,484 employees. In June, both wage earners and the self-employed rose by 17.9 percent and 1.8 percent in the sector, representing 81 percent of total engaged workers in these activities.
job stability
The industry demonstrates resilience against inflation and stands as a key contributor to economic recovery and job creation this year. This resilience is reflected in the improvement of employment quality, helped by the government approved labor reform, according to industry observers.
Job stability is supported by large tourism groups. The association representing the thirty largest companies in the sector, including names like Meliá, NH, Iberia, Globalia, Riu and Amadeus, notes that the share of temporary contracts has diminished as new hiring trends shift toward permanent arrangements.
With the labor reform in place, there is a noticeable decline in temporary contracts and a rise in indefinite agreements. A quarterly report from Exceltur shows that in the spring before the pandemic, 92 percent of new contracts were temporary; this year the share has fallen to 46 percent, signaling stronger long-term employment prospects for the workforce.
Leading firms in the industry warn about rising costs, including wage pressures tied to collective bargaining agreements and price inflation. Exceltur has called for a collective bargaining framework among employers and unions to curb wage increases so profitability remains balanced for companies while continuing to attract and retain talent.
Meanwhile, a paradox emerges. while the sector seeks relief from price pressures, it also faces difficulty in finding skilled personnel. The pandemic caused a significant talent drain, and some firms have not yet recovered workers who shifted to other sectors during the downturn. This talent gap challenges operations even as demand climbs, prompting many businesses to invest in training and incentives to secure essential skills.