How many temporary contracts end up being indefinite?

Randstad, the number 1 human resources company in Spain and in the world, has published its report “Analysis of temporality in Spain”, in which its study center Randstad Research studies the fundamental role of temporary workers in employment and the economic development of our country.

The Randstad study indicates that 39.4% of permanent contracts signed during the year 2020 came from a temporary precedent, ie around 610,000. The percentage of contracts converted into permanent contracts has continued to increase since 2014, this which shows the relevant role of temporality in the generation of open-ended contracts.

Evolution of the percentage of permanent contracts resulting from temporary work

Source: Randstad Research – Analysis of temporality in Spain

Randstad also stresses that the contracts transformed into CDIs give more possibilities of access to stable employment to populations without higher education than the initial CDIs. In fact, 79.8% of retraining was signed by workers without higher education, while in the case of the first permanent jobs, this proportion falls to 72.8%. On the other hand, contracts converted into open-ended contracts mainly come from temporary contracts due to the circumstances of production (65.4%) and works and services (25.7%).

“We cannot ignore the relevant role of temporary hiring as the biggest gateway to stable employment in our country and its ability to provide experience and employability to 50% of the workforce that does not have higher education, ”said Luis Prez, director of institutional relations. by Randstad.

8 out of 10 Spanish workers are permanent or self-employed

The study also indicates that employment in our country is mostly stable, since 79.3% of workers are permanent employees or self-employed, more precisely, out of the 19.3 million employees registered in the last quarter of 2020, 3 , 1 million were autonomous; 12.2 million, employees, and four million had signed a CDD, or 20.7% of the total.

Active population in Spain

Source: Randstad Research – Analysis of temporality in Spain

Regarding the length of contracts, only 129,800 were less than one month, or 0.7% of total employees, which shatters the myth that most temporary contracts are of very short duration. Indeed, more than two million contracts have an indefinite duration of more than one month.

The acting rate in our country, that is to say the percentage of temporary workers in relation to the total, is 24.1%. Over the past four years, this labor market indicator has not declined by 26%, the current percentage being the lowest since 2014.

In the European Union as a whole, the rate of temporary employment is 15%, a percentage much lower than that of Spain. This is due to the fact that our country has an economic structure in which sectors with high seasonality have a significant weight in the GDP.

Indeed, some of the most dynamic activities in our country are those with the highest temporary employment rates, such as the primary sector (56.5%), construction (40.2%), artistic activities, recreational and entertainment (39, 9%) and hospitality (36%).

At the bottom of Europe in penetration of temporary employment agencies

Despite the high rates of temporary employment in our country, the penetration rate of temporary employment agencies (ETT), i.e. the percentage of workers hired through these companies, is at the bottom of Europe. , this percentage is 0.7% in our country, very far from the countries at the top of the ranking, such as the United Kingdom (5.1%), the Netherlands (3.3%) or Luxembourg (3%). ), and even lower than the world average (1.6%).

Percentage of penetration of temp agencies

Source: Randstad Research – Analysis of temporality in Spain

Este escenario es negativo para Espaa, ya que, segn Randstad, enaquellos pases con mayor presencia de trabajadores through ETT, the contractacin temporal es menor is adjusted there to las necesidades productivas, adems degarantizar el cumplimiento de la legislacin, disminuyendo el fraud en fraud employment.

3 out of 10 public officials are temporary workers

The Randstad Research report also analyzes the situation in the public sector, where the acting rate, at 30%, is even higher than that of the private sector (23.3%), for the eighth consecutive quarter.

Indeed, the temporary rate has been increasing in the public sector for eight years, since the first quarter of 2013, when this percentage stood at 19%. Specifically, there are currently over a million temporary public workers.

Given the limited-term employment scenario in our country, Randstad concludes that it is strongly recommended to follow the recommendations of the European Union concerning the need to professionalize temporary hiring through the intervention of temporary employment agencies. .

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