Estepona drives employment and business recovery in the Costa del Sol
Data confirms best October for jobs since 2007 despite seasonal uptick
Estepona and its surrounding area record a historic year-on-year drop in unemployment, becoming an economic reference for the Malaga coast. The municipality leads new business creation and self-employment growth, while Andalusia and the western zone manage seasonal employment adjustments.
In October 2025, Estepona has consolidated its position as an economic engine on the Costa del Sol, posting the best unemployment reduction figures since 2007. Although both Andalusia and Estepona saw a seasonal increase in unemployment following the summer tourist campaign, the year-on-year results reveal an outstanding improvement benefiting residents, business owners, and regular visitors.
According to official data from the Ministry of Labor and Social Economy and SEPE, Andalusia closed the month with 602,262 unemployed, a monthly rise of 2,535 people (+0.42%), in line with local economic seasonality. During the same period, Estepona’s unemployment level increased by 102 people, totaling 3,546 jobseekers after the end of peak tourist season. However, the annual comparison shows an 11% drop in Estepona and an 8% decline in Andalusia—figures that place Estepona among the most dynamic areas in the province.
The services sector—which accounts for over 70% of employment in the province of Malaga—was most affected by the seasonal adjustment, while construction and agriculture showed signs of recovery during the month.
A growing business environment
A key factor in Estepona’s employment growth is the expansion of business activity and the push towards new ventures. Estepona’s Town Hall has granted more than 200 new business licenses so far this year, up 10% from 2024, maintaining a pace of one new company every 1.5 days. In addition, self-employed people registered in the municipality already number 6,838, with annual growth of 4% and over 45% since 2011, underpinning a strong and diverse economic base.
Municipal initiatives—including waiving opening fees for low-impact activities and offering a 75% license subsidy for vulnerable groups—help make starting and consolidating businesses easier. Over 800 applications related to commerce and public space use have been processed in 2024, highlighting an agile and business-friendly environment for entrepreneurs.
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Provincial and regional context
Across the Western Costa del Sol, towns such as Marbella, Manilva, Casares, Benahavís, and San Pedro de Alcántara also experienced this seasonal uptick, although Estepona stands out for its ability to maintain positive long-term momentum. Marbella recorded 7,091 unemployed in October, with an 8.8% year-on-year reduction. Throughout the western coastal area, unemployment totals 12,143—a figure higher than last month, but notably lower than the previous year.
Andalusia overall not only brings down year-on-year unemployment, but also added 29,544 new Social Security affiliates in October, signaling net formal job creation and healthy worker movement between sectors.
Key data changing the local employment landscape
Estepona’s local labor landscape has evolved considerably in recent months, as evidenced by the latest official data. Unemployment in the municipality currently stands at 3,546 registered jobseekers, which is 440 fewer than in October 2024. This represents an 11% year-on-year decline, outperforming the regional average.
Business activity continues to grow, with over 200 new business licenses granted in 2025—a 10% increase compared to the previous year. The number of registered self-employed workers has reached 6,838, marking an annual rise of 4% and an impressive 45% increase since 2011. In addition, the local authorities have processed more than 800 municipal files related to trade and public space occupation, demonstrating a robust and dynamic business environment in Estepona.
In detail: Evolution of registered unemployment (October)
In detail: Business and self-employed creation
* Note: Figures for business licenses and new companies in some years are approximate and rounded, based on local and regional sources.
Outlook and next steps
Estepona’s consolidation as an economic leader of the Costa del Sol stands on growing business activity, a dynamic self-employment market, and municipal policies focused on facilitating jobs and enterprise. The positive trend in declining annual unemployment and diversifying the productive base herald a stable winter season, ahead of next year’s tourist campaign.
For detailed information on job and business opportunities in Estepona and the western area, residents can consult the Town Hall’s electronic headquarters or follow updates at Estepona Info.
Estepona reaffirms its leading role in the economic development of the Malaga coast, with data that shows genuine, sustained recovery despite seasonal adjustments.