The Balearic Islands closed the year 2024 with record figures in the labour market, consolidating their position as one of the Spanish autonomous communities with the best results in job creation and improvement in work quality. According to data collected by the Balearic Islands Labour Observatory (OTIB), the average annual social security affiliation reached 570,010 people, an increase of 3.3% compared to 2023, surpassing the national average of 2.4%.
Photo: Palma City Council.
In addition, unemployment fell by 8.3% compared to the previous year, bringing the average number of unemployed people to 28,943. The administrative unemployment rate dropped to 5.4%, the lowest in Spain, and well below the national average of 11.8%.
Working conditions also improved significantly. The temporary employment rate fell to 8.7%, and the part-time rate dropped to 12.7%, in contrast to the national figures of 14.4% and 20.4% respectively.
Sector growth: boost in industry and construction
Although the services sector remains the cornerstone of the Balearic labour market, accounting for 81.6% of total employment and 495,800 employed people, the greatest employment growth was seen in industry (18.8%) and construction (13.8%). Agriculture also saw a 3% increase, while the tertiary sector posted a more moderate rise of 0.4%, indicating stabilisation.
The number of permanent contracts became the dominant trend across all sectors. Construction led with 93.3% of contracts being permanent, followed by agriculture (78.9%), industry (75.8%), and services (66.3%).
Higher wages and lower unemployment
In terms of wages, the industrial sector ranked highest, with an average monthly wage cost per worker of €2,335, its historical peak, followed by services (€2,266), agriculture (€2,255), and construction (€2,112). These figures not only reflect improved earnings but also correspond to full and effective working hours, with the services sector having the lowest average working time (143 hours per month).
Unemployment declined across all sectors and regions, with the services sector contributing most to this drop, showing a 9.5% decrease and a total of 21,168 unemployed people. Industry also reduced unemployment in Mallorca and Menorca, although it rose slightly in Ibiza and Formentera. In construction and agriculture, the most significant reductions were recorded in the Pitiusas and Menorca, respectively.
Territorial employment specialisation
The report also highlights territorial particularities in employment distribution:
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Mallorca accounts for the highest share of employment in healthcare (10.7%) and administrative activities (9.56%).
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Menorca stands out for its employment in commerce (21.9%) and public administration (8.5%).
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Ibiza and Formentera (Pitiusas) lead in hospitality (38.2%) and transport and storage (8%).
Positive trend and reduced seasonality
A key feature of the Balearic labour market in 2024 was the reduction in employment seasonality, particularly in the services sector. Although this sector continues to show the highest rates of temporary employment (12.7%) and part-time work (11.9%), both indicators have declined compared to the previous year, suggesting a gradual reduction in the seasonal nature of tourism-related employment.
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