One of every two contracts signed in Spain in April were indefinite. Half of the total (1.45 million), more than 48%, reaching an all-time high of almost 700,000 contracts. The extraordinary thing about the data, for those less knowledgeable about the labor market, means breaking a perennial barrier that hampered stable hiring of around 10% in our country. The deployment of the labor reform, with the new contracts in force since April, has broken this situation for the first time in a month that has also achieved a strong boost in employment to a new record of over 20 million workers and with a notable drop in unemployment.
The ERTEs that did not become EREs, a success story in the labor market
In April, those 20 million people affiliated with Social Security were exceeded for the first time, with 184,577 more workers on average, and unemployment fell by 86,260 people this month, leaving the total at the edge of three million unemployed (3,022 .503).
The increases in the number of workers and the reduction in unemployment accelerate Compared to last March, in which there was concern about a certain slowdown in employment due to the war in Ukraine. But this April, the data is at the usual averages of good years of recovery of employment in the labor market in Spain.
The strong push of the labor market is reflected in the year-on-year data: almost one million more affiliated people in the last year (963,782), so that the rate of job creation exceeds 5%, maximums in the recovery of post-pandemic employment.
Regarding unemployment, unemployment has fallen by 888,125 people in the last twelve months, with a reduction of 22.7% year-on-year, also greater than in recent months.
An April full of challenges
The months of April are usually positive for the labor market, with an increase in employment and a reduction in the number of unemployed people. This year, the month was marked by important challenges: along with the uncertainty of the war in Ukraine, the new contract formulas of the labor reform were deployed for the first time and, in addition, goodbye was said to two star employment protection tools during the pandemic: ERTEs and the extraordinary strike of the self-employed due to COVID.
Despite the bad omens of some –such as the PP– the ERTE due to the pandemic that came to protect 4.3 million they did not massively become ERE (collective dismissals). Spain has said goodbye to the two mechanisms of 'hibernation' of jobs with a boost in hiring and affiliated people.
The month also came hand in hand with two important incentives: the celebration of an Easter with hardly any restrictions due to the pandemic and, after it was celebrated, the end of the mandatory mask indoors, a measure that has symbolized goodbye for many. to the exceptionality of COVID.
Indefinite contracts skyrocket
During the month of April, 1.45 million contracts were signed, of which 698,646 were permanent, 48.2% of the total.
“In December 2021, prior to the labor reform, permanent contracts accounted for 10% of the total. They rose to 15% in January, in February to 22%, in March to 31% and in April they exceed 48% ", they remember in Work. This month was highly anticipated because it involved the deployment of the new labor contracts of the reform, which were postponed for three months to give companies time to adapt to the new regulation.