Four out of six permanent contracts were either discontinuous or part-time

The average duration of the contracts is reduced by more than five days the year of the entry into force of the labor reform

The labor reform has turned around hiring in Spain, shooting up permanent contracts although reducing their duration. The limitation that it imposes on temporary jobs has already made a dent in the Spanish labor market and, in barely a year since its entry into force, the trend has changed and now the vast majority of the contracts that are signed are permanent, whose This number has skyrocketed by 232%, according to what the second vice president, Yolanda Díaz, presumed today from Congress.

However, more than half of these permanent jobs are either permanent or part-time, so they are not 100% stable jobs. Specifically, four out of ten indefinite contracts that were signed in 2022 were discontinuous permanent, two out of ten were part-time while the remaining four were full-time, according to data from the ‘Quarterly Labor Market Observatory’ published this Wednesday by The Adecco Group Institute and the Cuatrecasas Institute of Legal Strategy in Human Resources.

The Minister of Labor, however, this Wednesday took iron out of this boom in discontinuous landlines and the controversy over their calculation and assured that they are only less than 3% of the 20.5 million employed people in Spain. “It is a drop in the ocean,” stressed Díaz, who stressed that the “important thing” is that today these workers in seasonal activities “have life expectancy.”

higher turnover

Another unwanted effect of the labor reform is that it has cut the duration of contracts by more than five days, going from an average of 53.4 days in 2021 to the current 48.3 in 2022. Furthermore, the average duration for the fourth quarter of 2022, which stands at 46 days, is the lowest since 2006, standing at 46 days and having decreased by 11.1% compared to the fourth quarter of 2021. The average duration for contracts also decreases initials in December up to 43.7 days, a drop of 4.3% in one year. It should also be noted that very short-term contracts have increased in December and 40.8% last one month or less and 23% last one week at most.

Another way of analyzing the impact of the labor reform, and the quality of employment, has to do with the degree of contractual turnover, understood as the ratio of the number of contracts based on the level of affiliation. And here is also the negative data. The ratio of discontinuous permanent employees stands at 21.5% compared to 4.6% for part-time permanent employees and 2.3% for full-time permanent employees. When comparing according to quarters, we see that the ratio for discontinuous fixed contracts shoots up to 75.9% for the fourth quarter of 2022, a much higher figure than that of the same period of the previous year (14.7%) and the highest if one considers compares to fourth quarters since 2009.