Economic downturn sees fall in permanent contracts

19th May 2008, Comments 0 comments

Permanent contracts sign in the first quarter of 2008 is down 11.7 percent from the same period last year, says ministry.

19 May 2008

MADRID - Long-term hiring is beginning to feel the economic pinch. Just over half a million indefinite contracts were signed in the first quarter of 2008, 11.7 percent down on the same period last year, according to Labour Ministry figures reflected in an employment report by labour union UGT.

Figures also show that the year will end with an overall drop in the number of new indefinite contracts.

From January to March, the drop in open-ended contract numbers was almost twice that of temporary contracts, partly because in 2007 the government stopped giving companies a bonus for turning temporary contracts into indefinite ones, but also because of employers' lack of confidence in the economy.

The UGT report explores Spain's so-called dual job market, in which 30 percent of workers currently have temporary contracts and more precarious conditions than other employees.

Andalusia tops list
That figure, however, rises sharply to nearly 77 percent when the workers are under 20 years of age. Overall, more than half of temporary workers are aged between 25 and 39.

Broken down by gender, there are more men holding temporary jobs in absolute terms, but the percentage is higher for women than men: 32 percent compared with 28.7 percent.

Andalusia leads the list of regions with the highest rate of temporary employment at 42.9 percent, while Catalonia is at the bottom with 22.1 percent.

[El Pais / Lucia Abellan / Expatica]


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