The labor reform has caused a 'boom' in permanent contracts, but only 40% are full-time and the average duration of initial contracts has been reduced
The 'boom' of indefinite contracts that the labor reform has brought, which has more than tripled at the beginning of the year, also has small print. Most of these new jobs that are considered stable are not so, since 25% of the total are part-time, one in four, while another 35% are permanent discontinuous jobs. This means that less than half, barely 40%, can be considered permanent and full-time employment.
But not only that: the rotation rate of contracts in discontinuous permanent contracts is already greater than that of temporary contracts and even doubles it. In other words, discontinuous permanent workers, those who have intermittent employment based on seasonality, already sign more contracts than temporary workers. Specifically, the turnover ratio for discontinuous fixed contracts in April was 32.38%, which represents an increase of 10.79 percentage points compared to March, while for temporary contracts it was 15.64%, decreasing 14.4 points compared to the previous month; for the indefinite, however, this rate falls to 5.09%, 1.66 points more, according to the first edition of the Quarterly Labor Market Observatory published this Wednesday by the Adecco Group Institute. For its director, Javier Blasco, it is "an unwanted effect, but not unexpected, of the labor reform."
Blasco maintains that the retraining option for people with intermittent permanent contracts in periods of inactivity and with the aim of improving their employability only seems viable in those sectors (construction, contracting companies, temporary employment agencies) characterized by the mobility of workers. between geographically close workplaces and/or companies receiving the services, in certain sectors of activity, although the rule would need in some cases (such as ETT) modifications that would allow the combination of flexibility and greater permanence in the services (flexicurity).
It should also be noted that the average duration of the initial contracts fell by 22.12% in April to 47 days (compared to 60 in March). In one part, this reduction in the overall duration of the contracts may be due to the substitution effect of construction contracts, which are in the process of disappearing, by contractual formulas of shorter duration, although Adecco warns that it is still early for this effect: the various phases of The transitory nature of the effectiveness of the reform will take us until the end of 2025.
The greater presence of contracts due to short-term production circumstances leads Adecco to conclude that, despite the extra cost of 27.53 euros, companies are not going to artificially prolong their contracting needs due to legal imperatives, and that the This change will translate into more expensive contractual terminations, greater rigidities for the management of hiring and, therefore, less flexibility and competitiveness, which in the long run will result in less job creation.
The evolution of hiring according to the working day is similar to that produced in permanent and temporary: a decrease of 35.76% is observed for temporary full-time (503,377) and 33.77% for part-time (248,070). , while the permanent ones have increased by 18.83% full-time (187,814) but with a much higher growth, of 37.08%, in the part-time modality (117,865).