Services are leading the way in business creation in the Balearics. | El Economico

There were 47,115 businesses registered with social security in July, a further indication of good economic activity in the Balearics in that it represents a return to similar numbers pre-economic crisis. In 2007 there were 47,854 and in 2008 the figure was 47,347. The following year there was a slump to 44,362, with 2012 (42,743) having been the low point.

The July number doesn't give a totally accurate picture of business health in the Balearics as there is a significant seasonality effect to take into account. In January this year there were just over 37,000 businesses registered, so a difference of around 10,000. Nevertheless, the seasonal growth has contributed to a net growth in employment, with the Balearics leading the way in job creation.

While the regional government has been quick to point to this positive trend, business associations - CAEB and Pimem - are both insisting that there have to be legislative measures to allow for business creation.

Carmen Planas, president of CAEB (Balearic Confederation of Business Associations), recognises that the July figure is an indicator of economic recovery but she believes that it is losing steam. She argues that there need to be incentives for investment, measures that favour business competitiveness and legal certainties. These are required to complete the process of economic regeneration and to encourage stable and quality employment.

The service sector has been the main provider of additional businesses, especially tourism, with retail also contributing as well as the construction industry.