It almost sounds like a contradiction: Mallorca set new records in terms of visitor numbers and unemployment rate in 2023, but salaries, of all things, went downhill. As reported by the Spanish statistics institute INE, the gross income of employees in the Balearic Islands fell by an average of 74 euros compared to the previous year. This is the first time that the archipelago has slipped below the national average in a national salary comparison - a development that raises questions.
From the top to midfield
Just a few years ago, the islands were one of the top regions in Spain in terms of salaries. But in 2023, the Balearic Islands came eighth in the regional ranking. The average salary was €2,237 per month, compared to €2,311 in the previous year. By comparison, employees in the Basque Country continue to earn the most at 2,624 euros, while Extremadura remains at the bottom with 1,915 euros.
It may come as a surprise that a tourist stronghold like Mallorca, of all places, is slipping in the salary statistics. After all, the island attracts millions of holidaymakers every year, who bring money into the local economy. However, the tourism boom does not seem to have been enough to keep wages stable on the island.
Salary increase throughout Spain - but not in Mallorca
While salaries shrank in Mallorca, the earnings of employees in the rest of Spain grew significantly. On average, salaries rose by 7.3 percent to 2,273 euros gross per month - a record since the surveys began in 2006. Particularly striking: the state minimum wage, which currently stands at 1,134 euros, has risen by an impressive 54 percent since 2018. This has benefited employees with low qualifications in particular - an area in which many jobs in the hospitality and tourism industry are located on Mallorca.
Inequalities remain
The statistics reveal not only regional differences, but also social divides. Women continue to earn significantly less than men: around 40 percent of women earn less than 1,534 euros gross per month, while this only applies to 20 percent of men. Employees with permanent contracts earn an average of 2,363 euros per month, while fixed-term employees have to make do with 1,832 euros.
What is the reason for the decline in the Balearics?
The decline in salaries on the Balearic Islands is difficult to explain. Experts suspect that the rising cost of living on the island and the strong dependence on tourism play a role. Seasonal employment and competition for lower costs in the restaurant and hotel industry could be further factors.
At the same time, rents in the tourist strongholds continue to rise, which puts additional pressure on real wages. And so the question remains: how can the island's economic dynamism be used to pay employees a fair wage?
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