The worst days of the pandemic are finally behind us. Unemployment surged during the crisis, yet the ERTE tool helped soften the blow. Across the state, indicators show improvement: unemployment has fallen for seven straight months, and 143,422 fewer people are registered in labor offices compared to the pre-crisis period. Yet recovery remains uneven across regions. In nine Alicante counties only five managed to reduce the 2019 unemployment level. Alto, Medio, and Bajo Vinalopó, Vega Baja, and l’Alacantí stand out where residential tourism helps sustain the agri-food sector and fuels export activity, lifting employment in those areas.
The latest labor market data, covering the first quarter of this year and released by the Generalitat Valenciana Statistical Portal (PEGV), reveals persistent disparities in recovery. Before the health emergency, differences among districts in the province were evident; Vega Baja led the way by cutting unemployment from 16.46% to 13.89%. Orta Vinalopó moved from 18.38% to 16.32%; Alto Vinalopó from 15.16% to 14.37%; l’Alacantí from 15.20% to 15.15%; and Bajo Vinalopó from 16.74% to 16.44%.
Meanwhile, several districts continue to show higher unemployment than in 2019, though the gaps are narrowing. Marina Alta stands at 12.51% now versus 12.07% in 2019; Marina Baixa at 15.24% versus 14.63%; Comtat at 13.44% compared with 13.33%; and l’Alcoià at 13.96% versus 13.84% three years ago. These figures reflect how structural factors interact with sectoral dynamics to shape the regional recovery.
Paloma Taltavull, professor of Applied Economic Analysis at the University of Alicante, points to several drivers behind the regional differences. In the three Vinalopó districts, rising exports in the footwear sector and a steady performance of agro-food products and wine contribute to the decline in unemployment. Vega Baja benefits from a robust agri-food sector throughout the crisis and a renewed return of residential tourism, which adds demand across the region. In l’Alacantí, the capital’s economic pull acts as a powerful growth engine for the broader area.
Province-wide trends show progress in permanent employment, with roughly half of new contracts being permanent. This pattern aligns with expectations for the tourism-heavy areas of Marina Alta and Marina Baixa. Francisco Menargues, dean of the Official Association of Economists for Alicante Province, expresses guarded optimism about the future of these tourist hubs. He notes that early quarter indicators may not yet reflect the full seasonal impact, but all signs point to a strong summer. The forthcoming tourist season is anticipated to bring a notable upswing in activity and employment in the region.
A striking development is the rise in occupancy rates across Alicante counties. This uptick could be linked to a migration shift and more people who were inactive during the health crisis entering the workforce. The overall market is witnessing renewed vitality, with visitor activity translating into higher internal demand and employment opportunities across the province.
In summary, the first quarter data illustrate a positive trajectory for several districts while highlighting continued regional disparities. The combination of export recovery, intensified agri-food performance, and targeted tourism strategies appears to be driving a broader, steadier recovery in employment and economic activity across the province. [CITATION: PEGV Statistical Portal, 2024] [CITATION: University of Alicante, 2024]