September foreign hiring patterns and contract mix

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Trends in Foreign Hiring and Contract Types in September

In September, foreign workers signed a notable share of indefinite permanent contracts, reflecting the impact of the latest labor reform. A total of 72,987 such contracts were registered, underscoring the growing role of non-nationals in long-term placements.

Last month saw nearly 1.4 million employment contracts recorded. Data from the Public Employment Agency (SEPE) shows a 16 percent year-over-year decline, with foreign workers contributing about one-quarter of all agreements. Of the overall contracts, 765,914 were full-time, 412,099 were part-time, and 214,192 were permanent intermittent positions.

Foreign employees accounted for 22.2 percent of full-time contracts (170,223 total), 18.5 percent of part-time contracts (76,256), and 34 percent of non-permanent contracts (72,987). A year earlier, contracts involving foreign workers represented 21.15 percent of total contracts, with 20.8 percent for full-time, 16.7 percent for part-time, and 29 percent for temporary fixed contracts. These patterns show a gradual shift toward more flexible arrangements among foreign workers despite an overall drop in contract volumes.

Even as the total number of signed contracts falls from the previous year, the share of temporary contracts held by foreigners has risen within the non-permanent category.

How could unemployment rise in September even as employment climbs?

Considering contract duration, foreign workers signed 180,751 permanent contracts in September. In total, 18 percent (768,766) of subscribed contracts were realized, including 28.9 percent of the 623,439 permanent contracts and 138,715 temporary contracts. These figures highlight the persistence of longer-term commitments alongside a sizable volume of temporary engagements among foreign entrants.

Sectoral distribution of foreign contracts

What stands out is the sectoral breakdown. Services accounted for the largest share of contracts signed by foreigners (189,613), followed by industry (28,977) and agriculture (77,643). Construction contracts were fewer in number (23,233). This distribution underscores how foreign workers are concentrated in service-related roles and specific industries, with hospitality showing strong foreign participation.

In this period, non-EU workers led contract participation (243,423), with a higher incidence among male workers (190,020). The data also reveal shifts in membership and engagement: average loyalty among foreign employees rose by 9.4 percent, according to the Ministry of Participation, Social Security and Migration. Last year saw 230,971 new members, bringing total membership to about 2.7 million. From September 2022 to the same month in 2023, overall membership increased by 2.7 percent, adding 544,508 positions and growing to 20.7 million compared with the year before. Foreign workers thus represented 12.9 percent of total employment, a share not seen in a decade.

Most foreigners fall under the general regime, which encompasses 83.9 percent of subsidiaries and 2,253,419 workers. Among sectors within the general regime, hospitality shows the highest concentration of foreign workers with 421,492 individuals; notably, a quarter of hospitality workers are foreigners. In hospitality, foreign employment rose by 13.66 percent, indicating that about 27.24 percent of all industry members belong to a foreign nationality.

These patterns reveal how migration and labor market policies shape the mix of permanent and temporary roles across regions and industries. They also reflect ongoing adjustments to work visas, sectoral demands, and the dynamics of cross-border employment in the modern economy. [Citation: Ministry of Participation, Social Security and Migration]

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