What is the initial impact of job reform on temporary contracts?

this Active Population Survey (EPA) for the second quarter of 2022 leaving the first photo the influence it has labor reform in the Spanish labor market. The main purpose of the rule, agreed between the government, employers and unions, was to reduce the high loss rates that the Spanish labor market had dragged on for decades. The new hiring formulas went into effect last April, and there was an unprecedented drop in the temporary employment rate in the first three months of implementation.

Transience: historical decline

The first three months of labor reform had an unprecedented impact: temporary employment is falling while employment continues to rise. So far, there have been moments of reduction in the number of temporary soldiers, but these are always periods of crisis and recession Task. In other words, the number of storms decreased because they were the most. cheap Y easily fired by companies and when the skinny cows come. The latest episode is when the pandemic broke out. In the first bars thousands of workers were unemployed and almost all of them were temporary as the permanent ones went to ERTE.

In this second quarter, there was a positive balance in job creation of 375,400 employees with the addition of 616,700 with permanent contracts, while temporary contracts were reduced by 241,300. Which leaves a contingency rate 22.3%, almost two points lower than in the previous quarter. The positive note does not hide the fact that Spain has a long way to go to approach European statistics, with the EU average being around 15%, and Spain remains the country with the highest temporary employment in the Old Europe. Continent.

Young people cling to impermanence

The first three months of full-fledged labor reform had a significant impact overall, but they failed to stave off the impermanence among one of the groups that suffered the most: youth. Between under 30 most 47.2% They still have a temporary contract. Yes, it’s down 4.6 points from the previous quarter, but it’s still very high and much higher than other age groups. What is now unknown is how this statistic will follow in the coming months and whether youth employment will continue to grow. uncertain or not.

Probability increases in the public sector

Contract rules of business reform, sector specialbut not in public. And that’s the difference between wage earners in this second quarter of 2022. To manage private company rose to 10 points. While temporary employment decreased to 19.8% in the private sector, it grew to 32.4% in the public sector.

The process the Government designed to reduce the likelihood in the Administration is going the other way and is the new stabilization law. This allows different administrations (possibly concentrated in services administered by autonomies) to combine processes of merit-based competition to permanently cover the hundreds of thousands of places currently occupied. temporary already staffed. And these only accredit previous values, without having to go through an opposition. These processes are expected to close in the last part of the year.

Reform does not trigger prejudice

One of the possible side effects of the new hiring formulas was that they triggered partial contracts. In particular, the reform of temporary contracts discontinuous constant (which has the indefinite category). As the statistics reflect, it did not happen during the first three months of validity. The bias rate decreased compared to the previous quarter, from 14.9% in the previous quarter to the current quarter. 14.7%. For the same period last year, the rate was 15.3%, which is five-tenths higher than what is currently available.

This indicator may be subject to fluctuations in the coming months and how it will evolve is unknown. Well, the person hired now on a permanent basis – given that the intermittent staff of the hospitality and trade industries will mostly be in full operation for the spring and summer campaigns – has been hired full time.

Lower temporary employment in agriculture and services

Sectors where the probability decreased most in the first three months of jobs reform were identified. Services Y farming, although rates of temporary contracts have fallen across the board. Possibility decreased in services almost five times (with labor reform already in full force) more in the second quarter than in the previous quarter. When it comes to agriculture, the decline is almost twice as bigBy the way industry Y building this indicator has fallen in almost the same way as it has fallen in the previous months.

Source: Informacion

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