The labor reform in Alicante delivered a striking shift, increasing permanent contracts from 11% to 47.5% in just one year. Yet the growth was not uniform across all sectors. Construction led the surge, with permanent roles nearly fivefold, driven not only by regulatory changes but also by persistent worker shortages. Employers began offering better conditions to keep talent. The revival of activity spurred by reforms and the push from public projects also contributed to the shift. Services topped the totals, with seven out of ten permanent contracts in this sector.
The state closed the year with 272,268 permanent contracts, up from 68,891 the previous year, according to data released by the Public State Employment Service (SEPE). This uptick underscores how labor reform reduced temporary employment in Alicante, a region heavily dependent on seasonal industries such as tourism, toys, and footwear.
Construction stands out in this growth. Permanent contracts rose from 6,263 to 28,477 in 2021, including 22,870 full-time, 2,958 part-time, and 2,649 intermittent positions. Javier Gisbert, president of the Alicante State Public Works Federation (FOPA), cites the regulatory change ending certain contracts for works and services as a key factor, while also pointing to a broader labor shortage that has a decisive impact on the sector.
Estimates indicate a shortfall of around 10,000 construction workers in the province, creating hesitation among firms about expanding the workforce. Gisbert notes that companies are pursuing all available options to retain staff, with contract duration becoming a central tool, in addition to salary incentives.
Within a sectoral context that has seen mobility explode, city councils and regional administrations are carrying out more public works than ever to advance pending projects ahead of elections. Building renovations are rising, aided by European funds aimed at such improvements. As a result, demand is high, and firms are intent on securing sufficient personnel for long-term projects.
First year of labor reform leaves nearly 272,000 newly employed workers in Alicante
Jesualdo Ros, general secretary of the Real Estate Developers Association of Alicante (Provia), emphasizes robust activity in residential construction and notes that firms are doing what they can to maintain lean teams. He stresses concern over the manpower shortage and says the best possible conditions are being offered to attract workers.
Beyond construction, services expanded from 48,210 permanent contracts in 2021 to 189,031 last year, with 62,604 full-time, 64,316 part-time, and 62,111 intermittent permanent positions. The industry sector rose from 10,172 to 30,415, including 14,426 full-time, 2,705 part-time, and 13,284 intermittent workers. Agriculture also grew—from 4,246 to 24,345—with 1,180 full-time, 148 part-time, and 23,017 permanent workers.
Efforts to attract foreign workers
Temporary contracts alone cannot meet the need for construction labor, so the search for alternatives continues. Gisbert explains that a Latin American recruitment firm has been engaged to sign an agreement inviting interested companies to participate. In Provia, meanwhile, efforts are aimed at promoting industrialization to enable more frequent use of prefabricated building components.