When we get closer on the third anniversary of the labor reform which has most increased the weight of permanent employment in the economy, we find the paradox that the temporary contracts which continue to be signed remain firmly established in precariousness: 2.4 million. 36.5% of subscribers over the first nine months of the year did not exceed seven days, while the fixed conversion rate remained at 4.9%, down from 5.8 a year ago%. As if that were not enough, the average duration of these temporary contracts increased from 46.9 to 46.1 days. Less than in 2019, when they reached 49.9 days.
Temporary hires have been reduced to their historical minimum and permanent hires have skyrocketed, which translates into a reduction in contracts: in 2024, five million fewer were signed than in the same period of 2019, which This is explained by the fact that permanent contracts are in place. from 9.6% of the total to 42.4%. More and more stable contracts reduce turnover. But the questions now turn to the quality of these permanent and temporary contracts, what the true effect of the standard was and in what precarious scenario we operate today. And the data indicates that the scope of the standard does not go far enough to continue to fight against precariousness.
In a context marked by controversies such as that of workers on intermittent permanent contracts, the current situation of temporary contracts goes relatively unnoticed, despite the fact that there were still 6.57 million contracts, 57.6% of those concluded in 2024 and they lose a new map of the “duality” of the labor market with unexpected nuances, as the one with the highest percentage of very short-term positions.
During the first nine months of 2019, The average duration of temporary contracts was 49.9 days: Those with seven or fewer made up 29% of the total, with 4.5 million. We must never forget that at the time temporary contracts represented 90.4% of contracts, but does this mean that the reform reduced the number of contracts at the cost of a deterioration in their quality? Let’s see what the data says.
Perhaps the most significant statistical impact when analyzing contract duration was the disappearance of employment and service contracts. And this modality which did not require establishing an a priori duration and which in the registers of the State Public Employment Service (SEPE) appears as “undetermined.”
This has been interpreted as a source of “hidden” abuse of temporality. When they disappeared, many became permanent and others, those of shorter duration, moved to the temporary category due to production circumstances. This would explain the reduction in days since the appearance of shorter contracts. From now on, the only contracts which do not specify a duration are replacement contracts or those motivated by partial retirement. But even if this explains that there are shorter contracts in days, it does not solve the mystery of the higher weight which does not exceed the week. And historically, these focus not on those of work and service, but on those of the circumstances of production.. And they continue to do so.
The paradox of the most precarious contracts
To what extent has the quality of temporary employment improved thanks to the reform? In absolute numbers, dramatically, because they have been reduced to a minimum. In relative terms, the results are less positive. Fewer contracts are signed, but under the same conditions as before, or even a little worse. Furthermore, after the impact of the first two years of legal change There is no expectation of improvement to continue reducing those of very short duration.
The comparison with the previous year shows a slightly downward trend: in September 2023, 2.32 million contracts of less than seven days had been signed, i.e. 2% less than in 2024, and represented 35.5% of the total, also a point below current levels, while the conversion rate It remained at 5.8%, almost a point higher than the current figure.
But this “negative” stabilization is shocking because the government “sanctions” very short-term employment through an “additional contribution” that employers must pay at the end of fixed-term contracts not exceeding 30 days.
The amount reaches 31.22 euros and since the approval of the labor reform it has increased by 13.4%, in line with the increases in the SM.I. Although it may seem low, it must be taken into account that employers notice this more. additional cost” specifically in short-term contracts. An adequate strategy but one that the government itself “torpedoed”, excluding from its scope the most “precarious” contracts.
We are talking specifically about contracts for artists and technical and auxiliary staff of public performances which last on average 4.75 days, compared to 5.5 days a year ago. The contract for artists and technical and auxiliary staff of public shows was the solution designed by the Ministry of Labor and Culture as part of the negotiation of the new Artist Status to “liberate” the sector from the demands of its own labor reform. . Starting with the additional quote.
Last year, the use of this figure increased by 51%, from 196,911 in the first nine months of 2024 to 298,374 so far in 2024. This is the modality that has increased the number of signatures the most, although they are not the only ones to whom the Executive “forgives” the overbilling: it also does so with the 1.04 million replacement contracts. It happens that the average duration of these reaches 64.1 days and only 12.2% (129,609) do not exceed 7 days. This rate reaches 94% among artists, even if in the comparison it is worth remembering that most of these replacements are of indefinite duration.
However, neither the contract created in 2022 for shows and tours nor the replacement They do not represent the greatest source of contractual insecurity: These are temporary contracts due to production circumstances. So far this year, 4.9 million have been signed, of which 40%, or 1.9, last less than seven days. That’s virtually the same figure as a year ago, even if increasing overvaluation applies to them, and they account for 8 out of 10 very short contracts.
Companies do not want to stabilize the workforce
Added to this is another worrying fact: conversions from temporary to permanent have been reduced to historic lows, with 322,488 so far this year, 15% less than a year ago and 48% more less than in 2019. The drop in absolute figures obviously responds to the fact that there are fewer storms, but what is surprising is that the probabilities of moving from a temporary contract to a permanent contract did not increase after the reform.
In 20219, the temp to permanent conversion rate was 4.04%. In 2022, the first year of reform, it rose to 12.8%, but in 2022 had fallen to 5.8% to fall to 4.9% this year. The reading of this development is that, despite the fact that more permanent contracts are signed than ever, companies are choosing to create them from scratch, thus avoiding the tightening of the conditions for conversion to permanent contracts introduced by the new law.
These figures suggest that beyond the increase in permanent hiring, the patterns that govern job creation and destruction continue. And with this duality between the stability of certain contracts and others. Added to this is the fact that permanent contracts seem to have inherited part of the precariousness of temporary contracts. A diagnosis which indicates a discontinuous fixed (which include periods without working and without receiving a salary) but also ordinary indefinite periods.
However, the evolution of temporary hires over the last year, particularly among those of short duration, is sufficiently revealing to conclude that the effects of labor reform reached their peak several months ago and the Spanish economy and politics still have to do their homework before being satisfied.
