State of Alicante: pause and shift in employment during the start of the tourist season
In Alicante, the Active Population Survey (EPA) for the province showed a surprising turn. A portion of 7400 people managed to reduce unemployment, yet the drop did not come from a surge in new job creation. Between April and June, after the previous quarter had set a national record for employment growth, the number of employed individuals actually declined by 2100 compared with the typical figures for this period. These are dates that typically mark the onset of peak tourist activity. Over the last two decades, such a dip had occurred only twice before, according to INE data from 2008 and 2010, underscoring the unusual nature of this trend.
Similarly, the smaller unemployment decline was driven by a rise in the inactive population—those not currently working and not seeking work—largely due to more students declaring their status rising from 111,300 to 131,400. That shift is common around these dates and influences the headline unemployment figures.
Despite the fluctuations, the province still recorded a drop in total unemployed numbers from 137,400 to 130,000, pulling the unemployment rate down to 14.13 percent. That percentage represents the lowest point since the third quarter of 2008, even amid the seasonal changes that typically accompany spring and early summer.
The paradox remains: good news on unemployment does not automatically translate into new job creation. The total number of employed people edged downward from 792,100 in the first quarter to 790,000 in the second. The services sector saw the sharpest losses, with 5,400 fewer employees, and construction shed about 500 workers. In contrast, employment rose in industry by 3,400 and in agriculture by 300.
The broader context suggests that the trend could be linked to seasonal and structural factors. The first quarter had already shown an uptick in employment within the province, typically followed by a seasonal adjustment that occasionally reduces occupancy numbers. Across Spain, about 100,200 jobs were lost, highlighting the nationwide sensitivity to seasonal cycles and tourism dynamics.
Business leaders in Alicante have observed that the tourism season often accelerates hiring, yet the second quarter brought a mixed picture. Some hotels and tourism-related entities began reopening after pandemic-related shutdowns, while others faced continued challenges. The net effect in Alicante was a still-significant level of activity, with many segments maintaining a solid employment base despite the quarterly decline.
Even with the April-to-June dip, the province managed to sustain 790,000 employed people, which remains the fourth-highest figure in the historical series. This level also marks a gain of 55,100 workers from the previous year and exceeds the second quarter of 2019, pre-pandemic, by 7,200.
In a broader view, the June EPA results hint at a complex balance between temporary shifts and longer-term hiring momentum. That month, Alicante added 8,243 new jobs, a record that reinforced the narrative of ongoing employment resilience despite quarterly volatility. The EPA figures also showed the number of people contributing to Social Security in Alicante reaching 713,834 in June, a sign of sustained labor market activity that narrows the historical gap between occupied workers and those enrolled in Social Security. In Alicante, the EPA has traditionally indicated roughly 100,000 more people working than enrolled, a gap often attributed to the underground economy in the region. The latest data point to a narrower distance, suggesting improving alignment between employment and formal coverage.