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The level of rotation of jobs within a company can be used as an indicator of temporality in the labor market, since it indicates the relationship between the people who join the company and those who leave it. When a job remains empty, it is understood that there is a high turnover rate, while a low turnover indicates a lower level of exits and entries in the workforce, that is, greater stability.
Based on this premise, one of the effects of the labour reform is in the strong increase in permanent contracts to the detriment of temporary ones. A fundamental role is played by discontinuous permanent contracts, which are the destination of many of the work and service contracts -eliminated with the reform that came into force on January 1- and temporary ones, whose conditions have been more rigid since this year .
The recovery of the labor market that Spain is experiencing after the impact of the pandemic leaves an increase in the permanent contract of 325.8% compared to the same month last year and a fall of 37% in the storm in the same period. The biggest rise occurs in contracts discontinuous fixed (207,288 more), which rose by 158.9% compared to the previous month, and permanent contracts (512,967) increased by 58.2%, while temporary contracts (751,447) decreased by 35.11%.
Discontinuous permanent contracts, which are formally indefinite contracts, do revert to a certain temporalityat least in effective working hours, since it corresponds to activities that are carried out intermittently over time and in which the employee remains on the payroll.
mobility grows
It is precisely at this point where the ‘disguised’ temporality associated with discontinuous fixed contracts grows after the reform. As warned Adecco Group Institute In the first edition of the ‘Quarterly Labor Market Observatory’, the turnover ratio for discontinuous fixed contracts in April was 32%, almost eleven percentage points more than in March, while for temporary contracts it was 15.64 %, decreasing 14.4 points compared to the previous month, and for permanent employees, 5.09%, 1.66 points more.
As pointed out Xavier Blascodirector of the Adecco Group Institute, “the rate of rotation of contracts in discontinuous permanent contracts is already higher than that corresponding to temporary contracts, which seems to be an unwanted, but not unexpected, effect of the labor reform”, approved by the Government and which entered into force in January.
If we observe the contracts according to sectors of economic activity, Agriculture and fishing is the most affected both month-on-month (-22.48%) and year-on-year (-28.76%), followed by the Construction and Industry sector, while Services is the only sector that grows year-on-year (+12.31%). ).
The expert points out that although the new law is already transforming the market and that the generalization of Indefinite contract -ordinary and, above all, fixed discontinuous- will produce stability and put an end to precariousness, «it is an analysis on which it seems that months will have to pass to see the final result». Although “it must be recognized” that permanent contracts have grown exponentially, going from 10% in December to close to 50% in April and May 2022.
lack of professionals
On the other hand, one of the factors that distorts the hiring map and the dynamism of employment is the gap between current labor demand and the training offer of new workers joining the market. In fact, 80% of Spanish companies have difficulty finding professionals with the required skills, according to data from the latest ‘Employment Projection Study’ prepared by ManpowerGroup.
In this way, the talent mismatch in Spain records its worst rate in history. Since 2021, when the figure stood at 65%, it has grown by 15 points, to 80%.
“Despite the fact that in 2022 the best results in intention to hire in the last 20 years are being recorded, the talent mismatch rate is the highest in the last 12 years,” says the director of ManpowerGroup in Spain, Francisco Rivero. “Companies have a duty to act urgently and facilitate collaboration between companies, governments and educational entities to ensure that no one is left out of the market,” he adds.
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George is Digismak’s reported cum editor with 13 years of experience in Journalism