Alicante – The province of Alicante continues to struggle with lower-than-average salaries compared to the rest of Spain. Despite being the fifth-largest economy in the country, Alicante ranks among the lowest in terms of average monthly earnings.
The Salary Gap
The average monthly contribution base in Alicante is around €1,864 gross, which is approximately €204 less than the national average. This disparity has been steadily increasing over the past few years. Factors contributing to this issue include:
Precarious Employment: A significant portion of the workforce in Alicante is employed in precarious jobs, often with lower wages and fewer benefits.
Service Sector Dominance: The province’s economy heavily relies on the service sector, which tends to offer lower-paying jobs compared to industries like manufacturing or technology.
Seasonal Employment: The tourism-driven nature of the Alicante economy leads to seasonal employment, which can result in lower annual earnings.
The Impact on Per Capita Income
The lower average salary has a direct impact on per capita income in Alicante. With a per capita income of €19,705, the province ranks among the lowest in Spain. This lower income level can affect the quality of life for residents and limit opportunities for economic growth.
Addressing the Issue
To improve the economic situation in Alicante, the Institute of Economic Studies of the Province of Alicante (Ineca) suggests the following strategies:
Boosting Business Productivity and Competitiveness: Encouraging businesses to increase their size, productivity, and competitiveness can lead to higher wages and better job opportunities.
Attracting Investment: Attracting strategic investments and forging partnerships can contribute to economic growth and job creation.
Long-Term Effort: Improving the economic situation in Alicante is a long-term endeavor that requires sustained effort and strategic planning.
While challenges persist, addressing these issues and implementing effective strategies can help to improve the economic outlook for Alicante and its residents.
