Fri. Jul 19th, 2019

Only half of fixed contracts last more than two years | Economy

Only half of fixed contracts last more than two years | Economy



Increasingly, an indefinite contract is not synonymous with stable employment. Last year, 2.3 million such contracts were signed in Spain, but at the end of the year, only 1.4 million were still in force, according to a study of the economic cabinet of CC OO published yesterday. This means that 37% were terminated along the way. The percentage increases to 50% if it reaches two years.

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The calculations of the union economists, who have been following this phenomenon for several years, indicate that for a fixed job to be created, 1.6 permanent contracts have to be signed. This ratio was lower a decade ago: in 2018 they were initialed 1,2 and a year later 1,1.

In his analysis, the team led by Carlos Martín links this trend with the labor reform. In fact, in the years preceding this change in the Workers' Statute, the ratio remained at 1.1 or 1.2. As of 2013, this index jumps to 1.4 and, since then, it has not stopped growing. "The probability that an indefinite contract translates into a stable job is getting smaller, and it is from 2012 when this deterioration of the indefinite contract occurs as a form of access to an indefinite job. Before the entry into force of the labor reform in 2012, the vast majority - around 88% - of permanent contracts of one year were maintained at the end of the year, "the report analyzes. One of the debates opened in the last weeks, before the electoral advance, is if the Government changes significant points of the labor reform.

Among the data collected in the document, we can see how the total number of permanent contracts that do not become a fixed job grows. In the first years of the crisis, this figure fell below 200.00. This figure is also linked to the collapse of hiring that came with the recession. However, when Spain has started to grow and hiring has picked up, precariousness and instability have also increased a lot. And that can be seen in the fact that 854,638 indefinite theory contracts did not really become that.

In its last pages, the document summarizes what happened seven years ago. "Between 2012 and 2018, 11 million permanent contracts have been signed, of which 3.4 million did not even reach the year of duration and only 7.6 million exceeded at least one year of life," he concludes.

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