The labor reform, which took effect in January 2022, is starting to turn into a reform. higher economic growth. According to a preliminary study by Bank of Spain, transformation The conversion of temporary contracts to indefinite contracts and the reduction of temporary employment by 13.5 points throughout 2022 made it possible to increase the consumption trend in households.devoting a greater percentage of their income to expenditures and reducing their savings in the same proportion.
Employees with a generally indefinite contract (on average) according to empirical evidence provided by the Bank of Spain 81% of your household income to spend, if they have Allocates 72% of it to a temporary contract, and the rest is accumulated in anticipation of a possible situation. unemployment. Also, historically, it has been observed that converting a temporary contract to an indefinite contract temporarily results in a 20% increase in expenditure. the next two quarters to obtain the new employment status. According to the Bank of Spain, behind this behavior is the trust created by fixed contracts.
Based on these two principles and taking into account the massive reduction in temporary employment throughout 2022 due to the pressure for full-time, part-time or permanent contracts discontinuous constant– The Bank of Spain predicts less job insecurity will equate to higher consumer spending this year. between three and four tenths income of all households; well, Between 2,000 and 3,000 million Additional consumption in 2022 is due to lower temporary contract rates.
According to the Managing Director of the Bank of Spain’s Economy, Angel Gavilan, this study “does not imply an evaluation of recent labor reform”, but is merely “a first tentative exercise to be able to assess its impact on the economy”. At a press conference to present the Bank of Spain’s new macroeconomic projections, Gavilan explained that other issues, such as the impact of labor reform on workers’ careers, need to be considered in order to have a more complete vision. on different contracts and their human capital accumulation, job rotation, type of jobs offered, job efficiency and many more.