During 2022, the labor market saw a surge in indefinite contracts, reaching a milestone of more than 7 million agreements. This figure stands at more than triple the 2.1 million contracts recorded in 2021, a jump linked to the implementation of labor reform that shifted hiring patterns across the economy.
According to SEPE data, by November the total included 5.2 million first permanent contracts, with many previously defined in other modalities converted to permanent status, bringing the overall count to 6.5 million. This momentum suggests a sustained trend toward open-ended employment as reforms take hold and employers adapt to new regulations. [Source: SEPE]
If the current pace persists — roughly 480,000 first permanent contracts per month on average this year — plus the conversions, the 7 million threshold could be exceeded in December. That would mark a significant leap from 2021 and reinforce the trajectory toward more stable employment across sectors. The pattern reflects a broader shift in the labor market as permanent positions gain ground against temporary arrangements.
Last year, about 1.22 million contracts were added to the first permanent category by year end, while 877,865 contracts were converted from other modalities into permanent status. Together, these permanent contracts accounted for a small share of total employment contracts signed in 2021, highlighting the early stage of the reform’s impact. [Source: SEPE]
In the first eleven months of the year, non-permanent contracts already represented about 38% of all signings, with expectations that this proportion will still be evident by year-end. This marks a notable paradigm shift for the labor market, where temporary contracts previously carried more weight. [Source: SEPE]
discontinuous constant multipliers
Examining the initial perpetual contracts and those converted by November reveals that 2.1 million perpetual contracts existed, versus 9,246,194 in a comparable period of 2021. The data indicate that conversion and entry into permanent status accelerated as reforms took effect. [Source: SEPE]
Full-time permanent contracts totaled around 2.8 million, with about 1.6 million among part-time permanent workers. This level represents a doubling from the same period in the previous year and a near tripling in comparison to two years prior, underscoring the rapid consolidation of permanent employment.
The use of the discontinuous fixed method continues to influence the overall employment contract landscape. It emerges as the most common form of contract during the transition period created by the labor reform, which began processing changes in January 2021.
As permanent contracts rise, temporary contracts show a marked decline. By November, temporary contracts had decreased by roughly one third, with total employment contracts standing at about 10.5 million versus 15.7 million in the same period of 2021. [Source: SEPE]
When considering jobs and services that are at risk of ending after the reform, a smaller share remains. By November, around 1.3 million such contracts had been signed, reflecting an 80% drop from 2021 levels.
In terms of production realities, the share of contracts linked to final output trends slightly downward, moving from 7.8 million to 7.1 million in the same timeframe, a decrease of about 9%. These movements illustrate how the reform reshapes the composition of the labor market while preserving overall employment activity. [Source: SEPE]