The group factors out the necessity to monitor the effectiveness of discontinuous everlasting contracts to enhance the job safety of employees Highlights the will increase within the SMI and sees room for advantages to soak up further will increase in wages Points out the 30% discount within the variety of contracts non permanent one yr after the approval of the brand new regulation
The Spanish labor market has proven notable resistance and dynamism in latest instances, even though Spain continues to register the very best unemployment price within the euro zone, in response to the Organization for Economic Cooperation and Development (OECD), for the that the labor market reform, launched in 2021, contributes to enhancing the standard of employment within the nation.
“The 2021 labor market reform contributes to enhancing the standard of employment in Spain,” says the ‘assume tank’ for superior economies in its report ‘Employment Outlook 2023’, which highlights that one yr after its entry into pressure , the variety of non permanent contracts has been decreased by 30% and a lot of the new contracts are everlasting, decreasing the disproportion of non permanent contracts between Spain and different European OECD nations.
In reality, in response to the doc from the Paris-based group, within the fourth quarter of 2022, the proportion of recent jobs with non permanent contracts was decrease than within the fourth quarter of 2019 in 20 of the 28 nations with out there knowledge, regardless of of the robust financial cycle in each intervals and, on common, the proportion of recent hires with non permanent contracts fell from 49% to 46%.
“The largest proportional decreases had been registered in Norway, Spain, Sweden, the Slovak Republic and Ireland, whereas Lithuania and Iceland noticed a rise within the proportion of recent hires with non permanent contracts, though from initially low ranges,” highlights the OECD.
Monitor discontinuous fixes
In this sense, the OECD warns, nevertheless, that the effectiveness of permanent-discontinuous contracts, a brand new provision launched by the 2021 labor reform for seasonal employees, in enhancing the job safety of non permanent employees “remains to be unsure” and factors to the necessity for continued monitoring and probably tighter regulation to make sure additional developments.
In common, the group highlights that the Spanish labor market “has proven exceptional resistance and dynamism in latest instances”, as demonstrated by employment development of 1.2% within the first quarter of 2023.
In this sense, after the strong restoration of 5.5% registered by the Spanish economic system after the coronavirus disaster, the OECD forecasts that the financial growth of Spain will average to 2.2% in 2023 and 1.9% in 2024, so it’s anticipated that the nation’s unemployment price will stay at a comparatively excessive stage (12.6%) for the remainder of 2023.
actual wages
On common, actual wages fell by 3.8% per yr within the first quarter of 2023 in comparison with the earlier yr among the many 34 OECD nations with out there knowledge, whereas Spain skilled a decline of 1.2% within the yr so far. the primary quarter of 2023.
“This decline is extra contained than that noticed in different EU nations because of the dynamics of nominal wage development and inflation, particularly in the course of the second half of the yr,” explains the OECD, recalling that, on this interval, nominal wage development elevated from 3.2% to only below 4%, whereas inflation fell from round 9% to round 6%, cushioning the decline in actual wages.
Also, at a common stage, the OECD considers that there’s room for earnings to soak up further will increase in wages, at the very least for low-wage employees.
In the case of Spain, the OECD highlights that the nominal minimal wage has elevated by 13.7% since December 2020, in step with inflation, preserving the actual minimal wage fixed, additionally stressing that, even earlier than the escalation of the inflation, will increase within the minimal wage in Spain had been substantial, inserting the nation among the many OECD members with the quickest development within the authorized minimal wage.
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