The Federation of Small and Medium Enterprises of Mallorca (PIMEM) has expressed its concern over the growing exodus of workers from the private sector to the regional administration. The employers’ association warns that this phenomenon, driven by a salary increase in the public sector, is exacerbating the labour shortage in private companies.

According to PIMEM, the difference in working conditions is causing a significant transfer of employees, especially in administrative and auxiliary categories, where the administration offers a reduced working day, higher wages and greater stability without being subject to productivity criteria. In contrast, in the private sector, salaries depend on performance and competitiveness, creating an unequal situation that businesses cannot compete with.

In addition to salary factors, the employers’ association points out that public sector employees have easier access to credit and financing, further enhancing the appeal of public employment over the private sector. While private companies require greater proof of stable income and financial solvency for loans, public employees obtain better conditions with fewer requirements.

Serious imbalance due to the exodus of workers to the public sector

Jordi Mora, president of PIMEM, warns that if this trend continues, the business fabric of the Balearic Islands will be severely affected. “SMEs cannot afford to lose more essential workers. It is necessary to balance conditions between the public and private sectors to ensure a sustainable economy,” explains Mora.

In response to this situation, PIMEM is calling for a review of the public employment model to prevent salary increases from destabilising the labour market. The employers’ association proposes that wage improvements focus on strategic sectors such as healthcare, education, and security, without affecting administrative levels that are crucial for the functioning of SMEs.