Canary Islands face wage gaps and low public contract competition

The Canary Islands are facing significant economic challenges regarding labor costs and public procurement competition. According to data from the National Statistics Institute, the average monthly wage in the archipelago was €2,016.13 in the second quarter, a 4.1% increase from the previous year. However, this remains significantly lower than the Spanish national average of €2,512, widening the wage gap between the islands and the mainland.

Simultaneously, the regional government is seeking intervention from Brussels due to low competition in public contracts. A study by the University of La Laguna reveals that the Canary Islands average only 2.89 offers per contract, compared to 5.04 in mainland Spain. This lack of competition is linked to the logistical difficulties of insularity, such as high transport costs and limited supplier availability. Consequently, average discounts on contracts in the islands are lower (12.12%) than the peninsular average (16.24%), and nearly 9% of tenders remain unawarded.