Labor reform has led to a ‘bump’ in permanent contracts, but only 40% are full-time and the average length of initial contracts has been reduced
The ‘boom’ of open-ended contracts brought about by the labor reform, which more than tripled at the start of the year, also has fine print. Most of these new jobs that are considered stable are not, as 25% of the total are part-time, one in four, while another 35% are permanently interrupted jobs. This means that less than half, barely 40%, can be considered as permanent and full-time employment.
But not only that: the rotation speed of contracts in discontinuous permanent contracts is already greater than that of temporary contracts and even doubles it. In other words, discontinuous permanent workers, those who are seasonally employed, already sign more contracts than temporary workers. Specifically, the turnover ratio for discontinuous permanent contracts was 32.38% in April, an increase of 10.79 percentage points compared to March, while for temporary contracts it was 15.64%, a decrease of 14.4 points compared to the previous year. previous month; indefinitely, however, this percentage drops to 5.09%, 1.66 points more, according to the first edition of the Quarterly Labor Market Observatory published Wednesday by the Adecco Group Institute. For the director, Javier Blasco, it is “an undesirable effect, but not unexpected, of the labor reform.”
Blasco argues that the retraining option for people on permanent contracts during periods of inactivity and with a view to improving their employability seems viable only in those sectors (construction, contractors, employment agencies) characterized by worker mobility. workplaces and/or companies receiving the services, in certain sectors of activity, although in some cases (such as ETT) the rule requires changes that would allow the combination of flexibility and greater sustainability in services (flexicurity).
It should also be noted that the average length of initial contracts fell by 22.12% in April to 47 days (from 60 in March). On the one hand, this shortening of the total duration of the contracts may be due to the substitution effect of projects in progress, which are on the verge of disappearing, by shorter-term contractual formulas, although Adecco warns that it is still early for this effect : the different stages of transience of the reform effectiveness will last until the end of 2025.
The increased presence of contracts due to short-term production conditions leads Adecco to conclude that, despite the additional cost of 27.53 euros, companies will not artificially renew their contract needs due to legal obligations, and that the This change will translate into more expensive contractual terminations. , greater recruitment management rigidities and thus less flexibility and competitiveness, which will lead to less employment in the long run.
The evolution of recruitment according to the working day is comparable to that of permanent and temporary: a decrease of 35.76% is observed for temporary full-time (503,377) and 33.77% for part-time (248,070). have increased by 18.83% full-time (187,814) but with much higher growth, at 37.08%, in the part-time modality (117,865).
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
