Labor fiasco: 2.22 million “permanent” contracts destroyed

The labour reform has not achieved its objective. The protection of the fixed-term contract as prelude to employment stabilization It is a chimera and this modality has only served to dress one saint to undress another, because Temporality remains the constant.

In the last year, 2019 agreements have been signed 2.22 million discontinuous fixed contractsworkers who claim to have permanent contracts even if they spend long periods of inactivity. However, the number of workers registered with Social Security thanks to a fixed-term contract is 1,051,812 people, only 12,873 more workers than those who were registered with that type of contract a year ago (1,038,939) despite the fact that during that period 2.22 million contracts have been signed.

It is suspected that, according to these figures, such a volume of fixed discontinuous contracts It is only serving to mask temporality. As Randstad summarized yesterday: while 34.5% of all permanent contracts signed in the last year are fixed-term contracts, Only 2.5% of new members are currently working under this type of contract.

Only in this way can we understand that the number of employed people seeking employment has grown by almost 100,000 people, as reported yesterday by the USO union, and that of the permanent employment created at the gates of summer, Only 38.27% are full-time. The same old seasonality, disguised because the tourist season lasts a little longer every year and gains momentum, fortunately.

These are the conclusions that the Government does not talk about, stuck in the mantra of “Spain is going like a rocket.” Because even thoughThe number of unemployed at the end of June fell by 46,783 people Compared to the previous month (-1.79%), registered unemployment stood at 2.561 million, the lowest figure since August 2008 and a decrease of 127,775 people in the last year (-4.75%). Despite the driving effect of tourism, the drop in unemployment is the second worst record of the decade, only surpassed by that of 2022 (-42,409) and excluding the pandemic, where unemployment rose in June.

For its part, Social Security registered 21.4 million members –21,167 members discounting seasonality and the calendar effect–, after the increase of 31,311 employed people in the last month and 324,218 in the first six months of the year. However, in seasonally adjusted figureswithout taking into account calendar effects, This is the weakest month so far this year (31,311 members), with figures very far from the best months of June in recent years.

But it is also that, The bulk of the jobs created in June were temporary contractsas the Savings Banks Foundation (Funcas) warned in a statement yesterday. And the fact is that hiring grew by 3% compared to May, with a total of 1.38 million contracts. But compared to the previous month, the growth in hiring has only occurred in temporary contracts (+6.35%), and permanent contracts have fallen (-1.42%). In year-on-year terms, permanent contracts fell by 10.12% while temporary contracts fell by 5.68%.

The number of job seekers increased by 35,109 people in June (+0.83%), the worst performance in the series for that month, and rose to 4.26 million. The number of employed applicants – including those with a permanent, non-permanent contract – increased by 84,000 and now stands at 1.13 million.

All this places effective unemployment –registered unemployment plus job seekers with an employment relationship (fixed discontinuous inactivity) and discounting workers in ERTE– in 3.18 millionwith a gap with respect to registered unemployment of 570,922 people. Even so, the actual unemployment rate remains slightly lower than a year ago, with a year-on-year decrease of 54,000 people.