Spain | More permanent seasonal contracts in January: effect of the labour market reform?

Summary

Royal Decree-Law 32/2021 makes the permanent seasonal contract more flexible. Although they accounted for barely one in ten permanent contracts, these contracts increased by 74.3% monthly (adjusted for seasonality) last month and doubled compared to January 2021.

Key points

• Key points:
• Royal Decree-Law 32/2021 aims to reduce the duality of the labour market, applying, among other measures, the flexibility of the permanent seasonal contract.
• In January 2022, the temporary employment rate continued its downward trajectory that started in September 2021.
• The shock plan against temporary employment and the labour market reform measures could have contributed to an increase in permanent contracts.
• Although permanent seasonal contract accounted for barely one in ten permanent contracts, they increased by 74.3% monthly (adjusted for seasonality) in January 2022 and doubled compared to January 2021.
• Much of the impact of the labour market reform is likely to be delayed until April and even October.

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