Long-term unemployment on the Kanaren falls to 2009 level

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Long-term unemployment in the Canary Islands fell to 63,326 in August, reaching its lowest level since January 2009.
Gran Canaria saw the sharpest decline, at five per cent compared with the previous year.
The Canary Islands Employment Service is providing 8.5 million euros in funding for vocational integration programmes, with the aim of supporting more than 700 participants.

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Long-term unemployment in the Canary Islands is falling. In August, the figure fell to 63,326 people. This was the lowest level since January 2009. Compared with the same month last year, the figure fell by 4,899 people, or 7.18 per cent.

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In total, 144,459 people were registered as unemployed in the Canary Islands, 5,756 fewer than in August of the previous year. Compared with July, however, registered unemployment rose only slightly. The number of long-term unemployed, on the other hand, fell even when compared with the previous month.

«This monthly trend is in line with the usual seasonal pattern for August, which is why a comparison with the same period last year provides a clearer picture of the labour market’s performance,» said Isabel León Villalobos, Deputy Minister for Employment in the Canary Islands Government.

Unemployment falls in the Canary Islands; government launches support programme

It was already evident in previous months that the islands‘ labour market followed a fixed seasonal pattern during the summer. This time, the situation on the islands is particularly interesting:

Once again, the sharpest fall was recorded in Gran Canaria. There, the statistics office ISTAC reported a five per cent reduction in the number of unemployed compared with the same month last year. July had already seen a fall of 5.7 per cent. The unemployment rate in the Canary Islands stood at 11.6 per cent in the second quarter, 1.7 percentage points lower than a year earlier.

This year’s call for proposals for vocational integration programmes, which the Canary Islands Employment Service is funding with 8.5 million euros, has been open since Wednesday. The aim is to support more than 700 participants. León highlighted training, skills development and employment policy for particularly vulnerable groups. He said this was the most effective way to further reduce unemployment.

By sector, the situation in August was mixed: 2,269 people were registered as unemployed in agriculture. This was 0.7 per cent fewer than in the previous month. In the hospitality sector, the figure stood at 21,757, a decrease of 0.5 per cent. Unemployment rose to 5,239 in industry, to 11,543 in the construction sector, to 22,562 in the retail sector and to 70,607 in other services.

Year-on-year, all age groups reported fewer unemployed people. Among those under 25, the figure stood at 6,990, representing a fall of 407 people, or 5.5 per cent. In the 25 to 44 age group, the figure fell by 690 to 48,372, whilst for those aged 45 and over it fell by 4,659 to 89,097.

More employment contracts in the Canary Islands and more permanent jobs

The number of new employment contracts rose to 59,880 in August, representing an increase of 2,339, or 4.1 per cent, compared with the same month last year. This was announced by the Director-General for Labour, José Ramón Rodríguez. Women accounted for 29,061 of the contracts, 1,279 more than a year earlier. For men, the figure was 30,819, representing an increase of 1,060.

25,026 of the contracts were open-ended, accounting for 41.8 per cent of all contracts concluded, which is 1,240 more than in August of the previous year. Among those aged under 25, 16,199 contracts were concluded, 6.7 per cent more than a year earlier.

The recovery in the labour market coincides with a strong economy in the Canary Islands. In the second quarter, it reached its highest level since official records began in 2000. At the same time, consumer prices on the islands have also reached a record high.