The Alicante Labor Reform and Its National Context
Less than two years after its approval, supporters of the labor reform point to a clear achievement: the end of the abuse of temporary hiring. Latest social security data show a drop in precarious contracts across Spain, with Alicante showing notable improvements in national figures. The province moved ahead by more than two points, posting an above-average reduction in temporary employment rates.
In November, 28.2 percent of all workers in 2021 were employed on temporary contracts that typically allowed chains of short-term agreements. That figure has fallen to 10.5 percent, roughly a third of its earlier level. Yet this decline is even more pronounced when compared with the national trend, where insecurity among workers shrank from 27.3 percent to 12.9 percent over the same period. In Alicante, the shift is even more striking: the number of workers with only part-year contracts rose in the past year, while permanent full-year employment grew from 5.9 percent to 9.4 percent of total employment, four percentage points above the national average.
A lingering concern often cited by critics of reform is that increases in temporary-to-permanent contracts might mask ongoing insecurity. However, the data tell a different story. Alicante emerged as the province where labor market composition shifted most in this period, with the share of affiliated workers rising from 55 percent to 69.2 percent, a gain of 14 points. Full-time permanent workers now represent 52.2 percent of the workforce, up from 43.1 percent two years prior. It is important to note that these figures exclude civil servants and others without standard contracts who are counted in separate categories, including non-professional caregivers who make up about 10 percent of the workforce.
A nougat factory in Xixona. David’s Revenge
This shift toward more stable contracts is sometimes used to argue that reform merely masks insecurity. Yet the data indicate a real improvement in job quality for many workers during this period.
During these years Alicante managed to raise its share of the labor market, with a significant increase in the proportion of permanent workers. The number of permanent positions rose while overall employment grew, underscoring the reform’s impact on job stability and economic resilience in the region. These changes, however, do not imply civil servants or those without standard contracts are included in the same category; those workers are counted separately in the broader employment landscape.
A waiter serves customers on a terrace in Alicante. Pilar Cortés
Experts note that the reform marked a major step forward, especially in sectors relying on seasonal demand such as tourism and trade. The policy aimed to protect workers’ rights without sacrificing necessary flexibility for businesses, a balance many consider essential for Alicante’s economy. Reports from business leaders and unions alike describe the reform as a win for both companies and their workers, providing greater security while preserving the ability to adjust to seasonal cycles.
Looking ahead, some argue for further improvements to sustain gains in employment quality. The focus is on continuing active labor policies and smarter education strategies to match job creation with higher-skill opportunities, ensuring long-term growth and shared prosperity.
A university economist from Alicante notes that seasonal sectors will continue to experience fluctuations, but acknowledges the reform’s significant gains in the broader job market. The impression among policymakers is that the reform has delivered meaningful progress, with calls to expand policies that improve working conditions and support sustained economic development.
José María Ruiz Olmos, a labor official, points to the reform as evidence that policies aimed at improving employment quality can also drive growth. He highlights goals that include reducing economic volatility and shifting production models toward higher-skilled jobs and better wages for workers, aligning with the region’s broader economic strategy.
In national discussions of reform, union leaders and business associations agree on the value of the tripartite agreement with the government. They see improved job stability without sacrificing flexibility, a view echoed by many in Alicante. As the regional economy evolves, the emphasis remains on policies that stabilize employment while encouraging investment and innovation.
In Alicante, the reform’s influence extends to perceptions of formal employment and the role of the informal economy. Union leaders describe the period as one where job stability contributed to better functioning markets and workplaces. They also highlight the withdrawal of rigid maintenance agreements that previously constrained operating conditions and, they argue, supported a healthier, more adaptable labor environment.
The national conversation continues with questions about how to build on these gains. Some policymakers and analysts argue for enhanced education and targeted employment programs to ensure that growth translates into higher-skilled, better-paying jobs across the economy. The overall sentiment is that the reform has produced tangible improvements, but there is consensus that ongoing efforts are needed to secure long-term prosperity for Alicante and the country as a whole.