This OECD He praised the recent resilience of the Spanish labor market despite the price crisis and the uncertainty resulting from 500 days of work. war in ukraine managed to maintain unprecedented employment growth rates. In quantity and quality. Analysts from the international organization praised the organization’s capacity. labor reform An agreement was reached between the government, employers and trade unions to contribute to “improving the quality of employment in Spain”. However, the OECD also doubts the capability of the new system. permanent fixed contracts -the figure of a rising star with the reform – to provide job security to the employees with this formula. “Continuous supervision and regulation may be required potentially more stringent to ensure new advances”, they point out.
one third permanent contracts It has been a discontinuous constant since the entry into force of the labor reform signed in Spain – January 1, 2022. In the year and a half, more than 2.5 million of these intermittent employment contracts have been signed, which was anecdotal formula so far. Having an uninterrupted fixed contract means being employed for a few months a year and the others being excluded from SSI.
For example, a common formula in the hotel industry is to have some staff registered to work for three summer months and several weeks over Christmas. This leaves the worker unpaid for the rest of the year, but is guaranteed to be called again. Otherwise, the company will have to fire you and pay compensation.
to increase”Work safety“Without providing further details, which the OECD refers to, the Manager can increase severance pay for this group, which deters companies from giving up on them. It also strengthens guarantees that if it increases business it will call an intermittent landline instead of entering a new temporary contract or other Apart from options, it is one of its priorities to compel companies to offer a minimum annual period of employment, as already included in some collective agreements. labor inspection.
This is a slight decrease in unemployment in 2023
The labor market, like economic growth in the second half of the year, is starting to show signs of exhaustion and is slowing down. what will cause unemployment rate In Spain, the decline continues, but the decline is slight. According to OECD estimates, unemployment is higher than 12.9%, which it closed in 2022, according to INE data. 12.6% in 2023
High unemployment rates have placed a historical burden on the Spanish economy. So much so that after an unprecedented three-year cycle of employment expansion, Spain continues to boast one of the highest unemployment rates in the European Union. While the average of 38 analyzed countries is close to 5%, OECD forecasts that it will close the year with 12.6%.
Companies should increase salaries
If 2022 is an ‘annus horribilis’ for the pocket of the majority of Spaniards, then this 2023 is considered less harmful. In the first quarter of the year, the loss in real wages was 1.2%, three times less than the overall loss in the OECD (-3.8%) by discounting the effect of inflation. This is not because in Spain wages are much higher than in other countries, but because prices are more moderate. For example, inflation in Spain is currently the lowest in the entire eurozone.
In the full debate on whether the price crisis is exacerbated by excessive margins benefits Globally, the OECD thinks, “evidence shows that there is room for profits to absorb additional increases in wages, at least for low-wage workers.” In other words, most companies have a buffer to raise salaries without having to raise the prices of their products.
However, OCE warns, “it will be important to monitor salary dynamics in the coming years.” price spiral and salaries”. President of the European Central Bank, Christine Lagardeurged companies to raise wages without raising prices to avoid feared runoff effects.