The organization that encompasses the most developed countries on the planet, the OECD, considers that the effectiveness of permanent-discontinuous contracts, a formula whose use has skyrocketed exponentially in Spain as a result of the latest labor reform approved by the Government in 2021 is “still uncertain”, so it points to the need for continued supervision and potentially stricter regulation to ensure further developments in the Spanish labor market.
However, in its report ‘Employment Outlook 2023’ published this Tuesday, the club led by Mathias Cormann considers that the rule “contributes to improving the quality of employment in Spain” and highlights that more than a year after its entry into force , the number of temporary contracts has been reduced by 30% and most of the new ones signed are permanent, reducing the disproportion of temporary contracts between the country and others in the organization.
Of course, it shows that the country continues to be, by far, the one that registers the highest unemployment rate (12.7% in May), much higher than the average for the members, which was 4.8% that same month, and warns that the level of unemployment will remain at a “relatively high” level.
The club also points out that the real salary (if the effect of inflation is discounted) for each hour worked has fallen by 4% in Spain since the end of 2019, just before the Covid-19 crisis broke out, up to the first quarter of this year, when in the group of countries that comprise the organization this decrease has been limited to 2.2%.
