Donostia's Strategic Push for Economic Resilience Amid Employment and Industrial Challenges in 2026
Donostia intensifies efforts in 2026 to strengthen its advanced industrial economy and employment, alongside Basque Government's €5.8 million plan to boost local development across Euskadi.
- • Donostia reached a historic high of 129,180 Social Security affiliates in November 2025 with 5.3% unemployment, lowest in Basque capitals.
- • 25.5% of local industrial companies perceive recession signs, with 36% reporting weak order books, the worst since 2021.
- • Donostia aims to grow in applied intelligence, digitalization, R&D, and knowledge-intensive services to strengthen its economic ecosystem.
- • Basque Government will invest over €5.8 million in Employment and Local Development Plans throughout Euskadi in 2026, with a phased rollout starting in April.
- • Mayor Jon Insausti emphasized modernization of municipal processes to support economic dynamism and retain highly educated workforce.
Key details
In 2026, Donostia is intensifying efforts to foster a strong, innovative economy centered on advanced industrial services and digitalization, while navigating signs of economic slowdown among local industries. Jon Insausti, Donostia's mayor, reaffirmed this commitment during a visit to Biotech Foods, highlighting the city's focus on promoting employment and attracting investment as pivotal to social cohesion.
Donostia achieved a historic peak of 129,180 Social Security affiliates in November 2025, marking an annual employment growth of 1.51%, with the lowest unemployment rate (5.3%) among Basque capitals. Nevertheless, 25.5% of Donostia's industrial companies report recession signals, and 36% cite weak order books—the worst figures since 2021. To counter these trends, the municipal government plans to consolidate Donostia's role within Gipuzkoa’s industrial ecosystem by emphasizing applied intelligence, R&D, advanced engineering, and knowledge-intensive services.
Complementing local initiatives, the Basque Government’s Department of Economy, Labour and Employment announced a deployment of Employment and Local Development Plans throughout Euskadi, backed by a budget exceeding €5.8 million in 2026. This effort, which began with a €1.56 million pilot in 2025, includes fourteen new plans across municipalities with over 20,000 inhabitants starting April 2026, further empowering local governments to stimulate economic activity and promote inclusive employment tailored to their communities.
Insausti stressed modernizing municipal procedures to facilitate business dynamism through streamlined licensing and strategic investment site identification. With 35% of Donostia's workforce holding higher education degrees, the city aims to retain local talent by ensuring professional opportunities and maintaining a competitive, stable business environment. He concluded that reinforcing the economic foundation today is essential to preserving quality of life and urban cohesion in the future.
This article was translated and synthesized from Spanish sources, providing English-speaking readers with local perspectives.
