‘Click’ The Plan To Promote Permanent Employment

With the debate within the Government on the contents that will be addressed in the labor reform, one of the objectives of the measures that the Executive will promote, that of promoting permanent hiring among the salaried employees of our labor market, still seems a chimera after the Latest figures from the Labor Force Survey (EPA) published by the INE this Thursday.

This wave shows, on the one hand, the highest level of employment reached in our country since the fourth quarter of 2008, thirteen years ago. However, 62% of these new contracts signed are temporary, even at high levels if we attend to the demands of Brussels and the commitment on this matter reached by the Executive for the receipt of European funds.

Specifically, the number of wage earners increased by 409,100 people in the third quarter, of which 145,000 workers had a permanent contract and 264,200 with a temporary contract . In the last year, the number of wage earners has grown by 808,500 (permanent employment by 300,700 people and temporary employment by 507,800). That is, six out of ten signed contracts are carried out under the modality that the Executive intends to discourage with its reform.

“The Spanish labor market has dragged significant imbalances for decades that aggravate economic cycles, weigh down productivity increases, increase precariousness and deepen social, territorial and gender gaps, perpetuating inequality.

The high rate of structural unemployment and unemployment youth, excessive temporary and contract rotation, low employment rate and persistent gender gap result in low investment in human capital, low productivity, and high economic and social inequality “, points out the Executive in component 23 of the Recovery, Transformation and Resilience Plan sent to the European Commission in order to receive European reconstruction funds.

92% in Services
Furthermore, this preponderance of temporary contracts is better understood by observing the sectors that have led in those three months, coinciding with the summer period, the increase in employed : 92% of all jobs created between July and September occurred in the service sector.

Thus, from July to September, employment increased in Services (377,200 more employed persons) and in Industry (63,000) and fell in Agriculture (49,600 less) and in Construction (-31,200). In annual variation, all sectors saw employment increase, specifically, with 739,100 more employed in Services, 44,300 more in Construction, 40,400 in Industry and 30,400 in Agriculture.

With these figures, the employment rate (percentage of employed persons with respect to the population aged 16 and over) stands at 50.52% after rising 0.89 points compared to the previous quarter. In total, in the last twelve months, employment has increased by 854,100 people . While the entire workforce experienced an increase of 232,200 people in the third quarter, by 23,447,700, a maximum of nine years. In annual terms, the workforce has grown by 547,900 people.

An “unexpected” rebound
On this aspect, the Minister of Inclusion, Social Security and Migrations, José Luis Escrivá, highlights the “strong rate of job creation”, after knowing the data from the EPA for the third quarter, and advances that in the first 15 days of October figures were also “very positive” , so that upward trend will continue “clearly”.

The minister assures that this latest wave reflects “an increase in the active population”, hence it is “good news”, since “there are more people who, at this moment, believe that they will have the possibility of integration at work” , keep going.

Likewise, he has advocated “looking at the data as a whole” and has emphasized that employment “is above pre-pandemic levels” , with growth “unsuspected” “even months” ago. In addition to reviewing the “good data” obtained, he remarked that “the number of workers who are in Erte continues to decrease” after the toughest months of the pandemic, with a recovery that “is going to be very intense.”

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