The pandemic cuts the number of contracts by 29%, which falls to its lowest in 7 years

The Covid-19 pandemic cut by 29.3% the number of contracts signed in Spain in 2020 with 15.9 million labor agreements, 6.6 million less than last year and the minimum of this series in seven years.

According to the data updated by the State Public Employment Service (SEPE), 1.35 million contracts were signed in Spain in December, which represents a 22% decrease compared to 1.74 million signed in the same month of 2019, a year that ended with a record 22.5 million deals.

The 2020 figures, with the first decline in series after seven years of consecutive increases, thus represent the minimum since 2013, when 14.8 million contracts were signed, in a further reflection of the harsh impact of the COVID pandemic on the labor market. Thus, and after January and February in line with last year, in the harshest months of the confinement – between March and June – the number of signed agreements was reduced by half, reaching a total of 3.9 million contracts. The decline was moderating in the following months but has continued to show the strong slowdown in activity, especially in hotels and tourism.

The president of CEPYME, Gerardo Cuerva, speaks at a press conference

Thus, the greatest annual decreases are in the hostelry, which closed 2020 with 1.79 million contracts signed, 60.5% less than in 2019, when 4.54 million labor agreements were sealed. In total, the sector services, which brings together most of the contracts signed each year, has reduced total agreements by 36.7% with 10 million, compared to 15.8 million contracts a year ago.

In farming the decrease is smaller, 8.3%, with 2.87 million contracts compared to the total of 3.13 million in 2019, while in construction it rises to 18.6% with 1.09 million signatures, and in industry, 14.4% with 1.95 million contracts.

9 out of 10 contracts were temporary

The pandemic has thus broken the path of increases in recent years, a reflection of the recovery of the labor market but also of the high weight of temporality and high turnover, especially marked in the service sector. In fact, and despite this drop in hiring, in 2020 the usual structure was maintained when signing only 10% of permanent contracts, 1,545,610, compared to the rest that were temporary.

Among the storms, those of very short duration accounted for 23%, that is to say, about one in four work agreements did not reach a week long. The high temporality and turnover in Spain is one of the elements in which the Government wants to improve within the framework of the reforms proposed to Brussels.

At the press conference to assess the employment data for December, the Secretary of State for Employment, Joaquín Pérez Rey, pointed out that the evolution of the pandemic had prevented “the Christmas campaign from unfolding its full potential” in December, but that the data also showed how “the customs of the labor market are recovering” with very intense hiring flows, based on “a heavy use” of temporary hiring.

Source: LA INFORMACIÓN – Lo último by

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