The early-year approval of the labor reform marked a turning point, not only because it emerged from a consensus between employers and unions, but also because it promised improvements in the job market. After the first half of the year, those promises began to look real in Alicante, a region historically marked by precarious work. Uncertain contracts surged, while 134,816 permanent positions created during this period accounted for 43% of total hires, up from 13% a year earlier. Among the groups benefiting most are workers under 25, with at least a 631% rise in permanent employment in some sectors.
Alicante recorded a total of 310,787 contracts in the first half of the year. Of these, 134,816 were indefinite and 175,971 were temporary. This represented a notable shift in a labor market long led by temporary work. When compared with the same period in 2021, there were 253,973 contracts, of which 32,055 were uncertain and 221,918 were provisional. There is a clear trend of rising sustained employment, especially in the second quarter, as the reform takes hold across sectors.
The growth in permanent contracts extended across all sectors. In the first half of 2021, permanent contracts rose from 2,296 to 9,871 this year; in industry, from 5,032 to 16,149; in construction, from 1,458 to 12,624; and in services, which remains the province’s dominant sector, reaching 91,033 by midyear.
Another notable development is the impact on young workers under 25, a group historically hit by insecurity. The reform is lifting this segment, with overall hiring up 32% and permanent hires jumping from 3,469 to 25,376. The hotel sector appears to attract the largest share of these young workers, reflecting shifts in seasonal demand.
Assessments from social actors have been broadly positive. Yaissel Sánchez, secretary general of the UGT in l’Alacantí-Les Marines, states that expectations have been met and notes that the labor market has moved away from a previous pattern of heavy temporary employment, which in Alicante had reached around 90% in certain periods. This perspective underscores the reform’s perceived stabilizing effect on local employment.
Looking ahead, concerns remain about the coming months. Tourism, historically volatile, could influence outcomes after the summer season. Yet the presence of fixed permanent contracts offers a potential stabilizing factor for recruitment in future campaigns, including Christmas and Easter periods, helping to smooth labor demand across peaks and troughs.
Likewise, Raúl Alcocel, secretary of CC OO on the border of the Central Valencia Regions, highlights that the reform has improved oversight of hiring and reduced fraud that plagued a previous era. He argues that the results align with contemporary economic theories and emphasizes that stable employment can coexist with healthy growth, countering arguments that permanence undermines dynamism.
Salvador Navarro, president of the Valencian Community Business Confederation, recalls that the reform drew EU scrutiny due to concerns about high youth employment and reliance on temporary contracts. While some sectors faced challenges, he argues that pragmatic implementation has demonstrated that market alignment can be achieved without sacrificing competitiveness and social balance.