The average length of contracts will be reduced by more than five days in the year of entry into force of the labor reform
The labor reform has changed hiring in Spain, creating permanent contracts, although their duration has been reduced. The restriction it imposes on temporary jobs has already made a dent in the Spanish labor market and in barely a year after its entry into force, the trend has reversed and now the vast majority of contracts signed are permanent, with this number having skyrocketed by 232%, according to what the second vice president, Yolanda Díaz, assumed today from Congress.
However, more than half of these permanent jobs are permanent or part-time, so not 100% stable jobs. According to data from the Quarterly Labor Market Observatory released Wednesday by The Adecco Group Institute and the Cuatrecasas Institute of Legal Strategy in Human Resources.
However, the Minister of Labor this Wednesday took iron from this boom in broken landlines and the controversy over their calculation, assuring that they make up only less than 3% of Spain’s 20.5 million working people. “It’s a drop in the ocean,” stressed Díaz, who stressed that the “most important thing” is that these workers in seasonal activities have “life expectancy” these days.
Another undesirable effect of the labor reform is that the duration of contracts has been reduced by more than five days, from an average of 53.4 days in 2021 to the current 48.3 days in 2022. In addition, the average duration for the fourth quarter of 2022, which stands at 46 days, is the lowest since 2006, stands at 46 days and is down 11.1% compared to the fourth quarter of 2021. The average duration of contracts also lowers the initials in December to 43.7 days, a decrease of 4.3% in one year. It should also be noted that very short term contracts increased in December with 40.8% lasting a month or less and 23% lasting a week or less.
Another way to analyze the impact of the labor reform and the quality of employment has to do with the rate of contract turnover, understood as the ratio of the number of contracts based on membership level. And here is also the negative data. The ratio of discontinuous permanent employees is 21.5% compared to 4.6% for part-time permanent employees and 2.3% for full-time permanent employees. On a quarterly basis, we see that the ratio for interrupted permanent contracts for the fourth quarter of 2022 rises to 75.9%, a much higher figure than that of the same period of the previous year (14.7%) and the highest as one is comparable to the fourth quarters since 2009.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
