The labor reform that came into force a little over a year ago has suddenly changed the hiring model in Spain, to the point that it has managed in record time to solve one of the endemic problems of the labor market: reducing the temporality to historical lows, to the point that only 14% of current jobs have an expiration date (less than half that before the reform, while 86% are permanent.
However, there are two shadows in these data. The first is that although 86% of workers have a permanent contract, it does not mean that it is stable, since many of the new contracts that are signed are discontinuous permanent and, therefore, do not work throughout the year, while others They are part time. But, in addition, another direct and undesired effect that the labor reform is having is that the duration of the contracts is being significantly reduced.
What’s more, the average duration of the first quarter of the year is the lowest since 2006 and stands at 51 days, which represents a drop of almost 10% compared to last year, a drop that is due to the rotation of contracts, according to a report published this Wednesday by The Adecco Group Institute together with the Cuatrecasas Institute.
If only the data for the month of April are taken into account, the average duration of the initial contracts also decreased to 45 days, which is 9.4% less than in March and 4% less than in April 2022. In the past month, one in three contracts lasted at most one month, while one in five (21.5%) lasted a maximum of one week.
In reality, another of the effects of the labor reform is the fall in the number of contracts, since the indefinite ones predominate and temporary ones are practically prohibited, they have been reduced by more than 11% in April to 1.11 million. Of this amount, 626,779 were temporary, 16.6% less than a year ago, while permanent ones fell 4.4% year-on-year to 490,266.
This means that 56.1% of the initial contracts that were signed were temporary, the lowest level in recent years, while 43.9% were permanent, of which 36.9% were discontinuous permanent, also the best data.
#labor #reform #cuts #duration #contracts #minimum #days