The Balearic Islands have become the Spanish region with the strongest wage growth, recording the highest increase in average salaries across the country during 2025. This positive development highlights the strength of the regional labour market and reinforces the archipelago’s position as one of Spain’s leading economic performers.

Average labour costs per employee have risen to nearly €2,400, representing a 6.3% increase compared with the previous year. This growth significantly exceeds the national average and marks a historic milestone, as the Balearic Islands have surpassed the national salary average for the first time since comparable records began. Wage increases have also outpaced inflation, contributing to a real improvement in workers’ purchasing power.

The strong salary performance has been accompanied by continued progress in employment indicators. During May, unemployment declined once again, reaching one of the lowest levels on record. The number of unemployed people fell by almost 7% compared with the same month of the previous year, confirming the sustained strength of the labour market across all islands.

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The Balearic Islands Record the Highest Wage Growth in Spain, with a 6.3% Increase

Particularly noteworthy is the reduction in long-term unemployment and among jobseekers who had remained registered for several months. These trends demonstrate the labour market’s capacity to generate opportunities and facilitate access to employment for a broad range of workers.

The Balearic Islands also remain the national leader in permanent employment contracts. More than three quarters of all contracts signed during May were permanent, a figure far above the Spanish average. This reflects the consolidation of a labour model focused on stability, job quality and long-term employment opportunities.

Social Security membership continues to grow steadily, surpassing 653,000 registered workers and recording strong annual and monthly increases. At the same time, the self-employed sector maintains positive momentum, further strengthening its role as a key contributor to economic activity and business development throughout the islands.

The combination of rising wages, declining unemployment, expanding permanent employment and growing workforce participation places the Balearic Islands among the regions with the strongest labour market performance in Spain. These indicators underline the resilience of the regional economy and its ability to create quality jobs while supporting sustainable economic growth.