Tenerife’s economic strength in early 2026
Tenerife closed the first quarter of 2026 firmly established as one of the Canary Islands’ economic powerhouses, according to the Economic Situation Bulletin produced by the Santa Cruz de Tenerife Chamber of Commerce and promoted by the Cabildo (island government). The report confirms sustained growth, underpinned by the strength of the labour market and the services sector, although it also flags business caution over accumulated inflation, rising costs and moderating consumer spending.
Record employment and falling unemployment
The island achieved more than 460,000 people in work – the highest figure in its history – while the unemployment rate dropped to 8.76%, the best figure since June 2007 and nearly three percentage points below the Canary Islands average. Manuel Fernández highlighted that these figures reflect “the strength and dynamism” of the productive sectors, with particular mention of industry, which added 447 jobs, and services, which again exceed 23,000 active businesses.
Challenges ahead
The president of the Chamber of Commerce, Santiago Sesé, emphasised Tenerife’s economic leadership but warned of challenges including a shortage of skilled professionals and the accumulation of an investment deficit.
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