Tenerife Reports Record Low Unemployment and Tourism Growth in Q2 2025

Tenerife's economy is experiencing significant growth, leading the Canary Islands with a robust emphasis on tourism. According to the latest Economic Situation Bulletin released on August 7, 2025, the unemployment rate on the island has fallen to a record low of 11.04%, marking the best figures since 2008. This impressive decline corresponds with a notable drop in unemployment numbers, which decreased by 12,200 to a total of 55,050 individuals, representing an 18% year-on-year fall.

In the second quarter of 2025, employment rose by 1.3%, resulting in 443,450 individuals holding jobs on the island, which reflects a substantial 4.6% increase compared to the previous year. This rise showcases the importance of the service sector, which accounts for 43% of all employment in the Canary Islands, heavily driven by tourism activities. The tourism sector achieved a remarkable milestone, welcoming 1,719,588 visitors from April to June, translating to a 4% increase from the same period in the previous year.

The island's business confidence index has simultaneously improved, with a 0.9% increase contrastingly against a regional decline of 2.1%. In a recent presentation by Industry Counselor Manuel Fernández, he highlighted that 61.2% of businesses maintained their activity levels, while 23.2% reported an increase in business, indicating sustained economic optimism.

Observing the broader economic context, while Tenerife shows positive growth, officials recognize the critical need to diversify the economy due to its heavy reliance on tourism. Despite the promising indicators, there are calls for strategic decisions to address existing challenges, particularly in energy and other sectors.

As the situation develops, Tenerife remains a focal point of economic activity in the region, with efforts underway to ensure that this momentum continues into subsequent quarters, boosting both the tourism and broader economic landscapes.