The Tenerife economy had an “unexpected and surprising” rebound in the last quarter of 2022, according to data from the situation bulletin of the Chamber of Commerce, Industry and Navigation of Santa Cruz de Tenerife. The document reflects in the balance sheet historical records, the best results of the last 14 years, such as the lowest unemployment rate since 2008, 15.92%, or the recovery of tourism compared to before the pandemic (2019). The business institution and the Cabildo reinforce their public-private alliance before the announcement of a possible slowdown in 2023. This common roadmap is reflected in an island financing of 786,267 euros and eleven programs of employment and support to develop between now and December. The presidents of the island, Pedro Martín, and of the entity, Santiago Sesé, presented the joint actions.
The collaboration is aimed at generating new job opportunities and promoting the development and improvement of business competitiveness. Martín and Sesé were accompanied by the Minister of Employment, Socioeconomic Development and Foreign Action, Carmen Luz Baso, and the Director General of the Chamber, Lola Pérez.
Martín highlighted that in recent years the budget allocated to the Chamber of Commerce has more than doubled, going from 306,000 euros in 2019 to 786,000. In addition, new programs have been launched, in accordance with the current needs of the labor market. “Despite not having direct powers, employment is a vital issue for the Cabildo,” said Martín, who added that “that is why we have invested 54 million euros in actions aimed at promoting it and reducing the unemployment rate through collaboration with entities and institutions.
Strategic allies
Santiago Sesé valued the good results obtained thanks to public-private collaboration. He highlighted the role of the Cabildo as a “strategic ally not only for development, but also for the training of the productive fabric of the Island, which sees its competitiveness increase.”
He insisted on the idea that “Tenerife is an Island of opportunities”. But, he added, “we must be able not only to recognize them, but also to know how to take advantage of them.” He applied it to the Next Generation Funds and the role they could play in the transformation of the Island with special incidence in the energy sector and renewables where there is “great potential.” He opted for “legal responsibility” with special relevance in coordination between administrations and in continuity so that, regardless of the elections, investors have security in their projects.
Carmen Luz Baso mentioned the new employment programs aimed at two particularly sensitive sectors: young people (FP Dual) and people over 45 (Program + 45). He highlighted that “only in 2022, close to 400 unemployed managed to improve their job training through the programs promoted by both entities.” He emphasized the training activities aimed at entrepreneurs that emphasize digitization and computer security. Also in internationalization to promote the access of Tenerife companies to tenders abroad.
Lo la Pérez explained that throughout 2022 the Tenerife economy reached record figures both in terms of tourism activity indicators and in the behavior of its labor market. Pre-pandemic figures were exceeded and all-time highs were reached. Thus, the Island received 5,951,456 tourists, 115.4% more than in 2021, placing this figure above that recorded in 2019 (+ 1.1%).
22,430 less unemployed
Tenerife closed the 2022 financial year with a decrease of 22,430 fewer unemployed than in December 2021, leaving the total figure with a record low of 77,810 unemployed. The Island also broke records in Social Security affiliates with 411,330 employed, 13,750 more than at the end of 2021, exceeding the historical figure reached before the pandemic. According to the latest Active Population Survey (EPA), Tenerife recorded 489,140 people, distributed between 411,330 employed and 77,810 unemployed, which leaves an unemployment rate of 15.91%.
The growth is also hinted at by the Island Confidence Indicator, which shows how 85% of Tenerife companies improved or kept their activity stable in the last stretch of the year. Looking ahead to the first months of 2023, the forecasts tend to moderate, although they are “cautiously optimistic”.
Office to establish companies on the Island
The Cabildo and the Chamber plan that before the summer an office for attracting and assisting investors will begin to function, to which 150,000 euros will be allocated. Pedro Martín explains: “A space from which to offer advice to foreign companies that are already installed, in order to give continuity to their investments and help them grow and create jobs.” A kind of tutelage that promotes fixation to the territory through continuous care. The intention is to work with the Canary Islands Special Zone (ZEC). The promotional work has been done very well but the journey does not end once they have been installed. The example is the audiovisual animation sector. Martín believes that it is not the solution to not depend only on tourism, but it will help to have economies different from that of services. | JDM
