Hi there, having lived here since February 2004, it certainly beats living in the UK!
However, you are right in thinking about the job situation. I had a job as full time web designer until January this year, when I was told that they can only afford me part-time from now on, so I am now working without contract and on less than half my previous salary (which is not enough to live on, but I´m lucky to get a little bit of unemployment benefit to top it up).
Since January I have been looking for another part-time job but even though I have lots of shop assistant experience (and the web design of course), plus I speak intermediate Spanish, I have not been able to find anything. Don´t get me wrong, there *are* jobs, but you would have to be a fluent Spanish speaker to get those (see e.g. this website:
http://www.infojobs.net, just type "lanzarote" in the search and you will see, that there *are* quite a few jobs around).
The other thing is that things work mostly by *word of mouth* here, so if you don´t know anyone it´s even more difficult to find work.
Sympathies re. your wife - I also suffer from a so-called "invisible disability" (meaning I *look* well, but I am chronically ill) called fibromyalgia, plus I have rheumatoid arthritis, and hence I am also limited in what jobs I can consider. Bar work is a no no for me, for example, but shop work, up to 5-6 hours seems that I can cope with, except when I am having very painful flare ups, and it´s only possible to go to work after taking corticosteroids...
There isn´t much bar work around at the moment, since quite a few of them have either shut down completely or have cut down their staff or the hours of their staff.
Sorry to sound so negative, but this is a "real time" update from PDC as it is at the moment - if I were you I would give it a year or so and see how the situation is then. At the moment it is, sadly, looking rather dire....