Registered unemployment: Indefinite contracts climb in March: Nearly a third of signed contracts were permanent

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Registered unemployment: Indefinite contracts climb in March: Nearly a third of signed contracts were permanent Listen to this article

Waiter at a bar in Seville.
Waiter at a bar in Seville.Alejandro Begs (Country)

While the economy holds up pending the effects of the disastrous war launched by Russia in Ukraine, and citizens eat to see how they fill up their car fridges and tanks, the labor market finds itself within a chasm. Has managed to isolate to live, for the time being, sheltered from the consequences of the conflict. Unemployment fell from February to 3,108,763 people (-2,921), the lowest figure for the month since 2008; And the number of people attached to Social Security increased in “non-seasonal terms” by just over 140,000 workers, reaching 19,834,504, the highest figure for this period of the year since 2001. But the brightest box of figures released by the ministry this Monday is based on the Ministry of Labor and Social Security recruitment: for the first time since the historic series began, more than half a million permanent contracts have been signed in a month: 513,677 approx. one of three.

Even during the first two weeks of March, when financial markets suffered the most from the conflict, employment remained unaffected. Advanced data presented by Social Security Minister Jose Luis Escriva did not warn that galloping inflation could still lead to distortion in the labor market. Among other reasons, according to Escriva, was because the entry into force of labor reform had disrupted the hiring paradigm, placing the precarious individual at the center of labor relations.

Since the new norm came into force, in the first quarter of the year more than a million fixed contracts have been made (1,069,190), and their percentage in relation to the total has only increased: in January it was 15%, in February it increased to 21.9% ; And in March it has doubled compared to the beginning of the year, 30.7%. Although temporary contracts remain the main modality (1,158,164 in the past month), permanent contracts represent close to a third of the total, an unparalleled representation in the figures.

In fact, the true dimension of the cultural change demanded with the new legislative framework is visible in a year-over-year comparison: between the months of January, February and March 2021, a total of 463,813 permanent contracts were registered, less than half of that. Were. That’s one year. And where they have erupted with greater force, they are precisely in sectors that had high rates of temporary employment, such as construction, where nearly half of the new contracts were of an uncertain nature (41.3%).

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However, agriculture has been the productive vector that has historically capitalized on the highest rates of temporary employment, and therefore, now, is where change is most pressing. Compare the months of March 2019 (previous month which was not affected by the pandemic) and 2022, the number of permanent contracts has increased by 361.8%; Prior to construction (236.1%), where companies that were relying on the contract for work or service formula would not be able to do so after the three-month period that provided them with labor reforms. However, for these types of contracts that were signed legal vacancy The new rule can be extended up to six months.

Keeping the indefinite period as a central element of labor relations attempts to deal with impermanence, and eliminates even the smallest of contracts. They have been reduced significantly between the months of January and March 2022, by a third between 2017 and 2019 (31.8% for a day, and 30.7% for 2 to 7, accounting for almost half (13.1%)). going from and 17.3% respectively). Labor reform is also hidden behind this reduction, because for temporary contracts that do not exceed 30 days, companies are considered to impose a fine of 26.57 euros as an additional contribution.

There is only one group of women benefiting from the improvement in employment compared to February’s figures (-9,219). On the other hand, men and those under the age of 25 increased the number of unemployed by 6,298 and 7,365 people, respectively.

However, the number of people affected by a temporary employment regulation file (ERTE) reached a new minimum in March: 26,142 workers, of whom 23,662 were covered under the COVID modalities. Within this group, a large percentage is again represented by travel agency employees (9,175) whom the government agreed in the previous council of ministers to activate the RED mechanism for the sector, and thus the COVID-19 pandemic. Replaced by ERTE protection scheme. Been protecting them for the last two years.

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