Persistent unemployment: who is being left behind by the Balearic Islands' labor market?

PalmThe data shows that almost everyone in the Balearic Islands is employed. But the reality is more complex: thousands of people are unemployed for months or years, and many workers cannot sustain a life plan with current wages. The average number of people registered with Social Security was 585,000 in December, and sectors such as services and hospitality are demanding workers. But it is precisely these sectors that have the highest unemployment rates. Of the 29,305 people without work in the Islands, 22,323 are from the services sector and 3,181 from construction: they represent 87% of the total for December – data from the Ministry of Labor and Social Economy.

"They tell us there is a shortage of workers, but we see that there are unemployed people who could fill these jobs," says Maria Àngels Aguiló, Secretary of Economic Model, Employment, and Transitions at CCOO Balears. The union representative also points out that many job offers don't go through the Balearic Islands Employment Service (SOIB), but are instead made through other channels, such as online job platforms. "The demand for staff is small compared to the number of unemployed people," Aguiló insists, emphasizing the importance of this situation: "If the SOIB acted as a mediator, we would have data on whether there is a lack of training to adapt to new activities. The service would be much more useful," she comments.

The Minister of Labor, Public Administration, and Social Dialogue, Catalina Cabrer, acknowledges that this situation is a reality. "Companies use online platforms and word of mouth. I wish they would sell to the SOIB. In any case, the labor market in the Islands is dynamic and constantly evolving," she notes. "We have spectacular figures, but we must address our unemployment rate," she adds, and reminds everyone that the Government has launched the Intensive Monitoring Plan to retrain workers, recommend training, and design personalized career paths. "Unemployment for those over a year fell by 6.6% in one year," he says.

The general secretary of the UGT (General Union of Workers) in the Balearic Islands, Pedro Homar, points out the paradox that, despite macroeconomic growth, "there is structural unemployment and it seems we can't get out of this situation." "There are 29,000 people for whom we don't know what solution we can offer," he continues, also emphasizing that the rising cost of living and the housing crisis require urgent solutions, beyond the positive employment figures. "The situation couldn't be more critical. This will end in a social explosion," he stresses.

In fact, the way the labor market's performance masks the situation of a large part of the Balearic population is what David Abril, Professor of Sociology at the University of the Balearic Islands, highlights. "Any European country would want 29,000 people from a blog with well over 500,000 contributors. The problem is that this masks the fact that a significant portion of workers can't make ends meet," she points out. "Full employment was a good thing 25 years ago, and now it isn't. When politicians, whether right-wing or left-wing, say it's excellent, it's not," she emphasizes.

Employers' associations also perceive the contradiction of combining a labor shortage with thousands of unemployed people with little chance of changing their situation. "There are between 26,000 and 30,000 people on technical unemployment [on average, throughout the year], and at the same time, companies are having difficulty filling vacancies," notes María José Aguiló, executive vice president of the Majorca Hotel Business Federation, who asserts that this situation is "a systemic imbalance" in terms of demands. "The sector demands increasingly qualified profiles. Tourism employment no longer follows a low-skilled model," he comments.

The employers' association CAEB also emphasizes that training is essential to alleviate the situation and reduce the number of people who are still unemployed. "Training must be linked to the profiles demanded in each sector and the participation of SMEs in employment programs must be facilitated," says CAEB. It is clear that, to adapt its training, the SOIB (Balearic Islands Employment Service) needs information on the most in-demand jobs.

Age, a key factor

Age is a very important factor when it comes to condemning someone to long-term unemployment (more than 12 months). More than 50% of the unemployed in the Balearic Islands in December were over 45 years old – those 60 and over represent 16.5% – totaling 14,898 people. "The older you are, the higher the unemployment rate. This is problematic. Many older people make up a significant portion of the long-term unemployed," says Maria Àngels Aguiló. And, beyond societal ageism, there are no reasons why these people cannot be active in the labor market. "Older people get stuck in unemployment," says Abril, and, like Aguiló, she also highlights the importance of "gender bias" in the unemployment figures. "This is related to the fact that women end up giving up work to perform the caregiving tasks that patriarchal society places on their shoulders," says Abril.