Wages in the Balearic Islands rose in 2025 by the largest amount in the country, with an increase of 6.3% compared with the previous year. According to data from the Quarterly Labour Cost Survey by the National Statistics Institute (INE), the average wage cost per worker in the islands stands at €2,396.4. The increase is well above the national average, which stands at 3.2%, making the Balearic Islands the autonomous community where pay is rising the most.
In addition, for the first time since comparable records began, the average annual wage cost in the Balearic Islands is above the figure for Spain as a whole. The rise also exceeds inflation recorded in 2025, which stood at 3.1%.
“In the Balearic Islands, wages are rising faster than the cost of living, and that is very good news. This is the result of collective bargaining and the efforts made by employers to implement wage increases. We are focused on ensuring that employment is of quality“, said Catalina Cabrer, Balearic minister for Labour, Public Service and Social Dialogue.
Unemployment falls by 6.9% and reaches historic lows
The Balearic labour market also continues to show a positive trend in terms of unemployment. The number of people registered as unemployed in May stood at 23,607, which is 1,752 fewer than a year earlier and represents a year-on-year fall of 6.9%, according to the labour market report for May.
This is one of the lowest figures in the historical series. By island, the fall was particularly significant in Formentera (-13.9%) and Menorca (-10.7%), followed by Mallorca (-6.8%) and Ibiza (-5.2%).
The reduction in unemployment was sharper among women (-7.4%) and among people over the age of 25 (-7.4%). The fall in long-term unemployment also stands out, with a reduction of 10.4% compared with May 2025.
Another notable indicator is the administrative unemployment rate, which stands at 3.5%, the lowest of all autonomous communities.
The Balearic Islands lead permanent hiring
The islands continue to lead the national ranking for stable employment. In May, more than 75% of contracts signed in the Balearic Islands were permanent, well above the national average, which stood at 43.2%.
In total, 48,744 new contracts were registered, 11.5% more than in April. Growth was particularly strong in Formentera (+53.8%) and Menorca (+46%), although it also increased in Ibiza (+19.2%) and Mallorca (+5.5%).
Social Security registrations exceed 653,000 people
Social Security registrations reached 653,823 people in May, representing an increase of 15,233 registrations compared with the same month of the previous year (+2.4%).
Compared with April, the increase was 48,193 people, equivalent to growth of 8%, well above the figure recorded in Spain as a whole, where registrations rose by 1%.
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