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A booming economy, a record tourist season, but still there are more than 40,000 people without a job in the Balearics during the peak season. Now, unemployment is actually down on August 2016 but it is up compared to July 2017. In other words we have rising unemployment. So, why has the jobless rate actually increased at the height of the summer season? It is difficult to tell, because you would have thought that most firms would be recruiting rather than making people redundant, but this appears to be the case. It is yet another example that the holiday season this year has not been as good as many people had thought. Yes, there are many tourists around but there are mixed views on whether tourists have been spending.

For a relatively small group of islands, having 40,000 people without a job should be a big concern especially during the summer. There will be a big rise next month when hotels start closing down for the winter period and then an even further rise in October, marking the end of the season. I would venture to say that all-inclusive holidays are hitting the bars and restaurants in resorts hard and this could mean that they are employing fewer staff. A rising rate of unemployment makes the Balearic government's gamble on a higher tourist tax appear even more risky. If the economy starts to suffer as a result of the tourist industry, then the government will come under pressure for answers.