Spain sees record employment figures in April after labor reform

OVIEDO, Spain

Spanish politicians celebrated the record-breaking employment figures released on Wednesday, which showed that more than 20 million people were working in the country for the first time.

The employment milestone came years behind schedule. Former Prime Minister Mariano Rajoy aimed to have 20 million people working by 2019.

April’s employment figure was also historic because of a sharp shift toward permanent contracts.

In April, nearly half of all new contracts signed in Spain were permanent, whereas, over the past four decades, an average of around 90% of all job contracts were temporary.

The abrupt break in hiring practices has to do with the labor reform passed by Spain's lawmakers in February to clamp down on precarious employment.

The labor reform squeaked by in the Spanish Parliament with a majority of just one vote, thanks to an opposition politician accidentally voting in its favor.

“These are difficult times, marked by the effects of the war in Ukraine and the pandemic,” said Spain’s Minister of Labor Yolanda Diaz on Wednesday. “Our bet on permanent contracts and stable work is strengthening our labor market in this difficult international context.”

Prime Minister Pedro Sanchez also applauded the employment figures, saying Spain’s economic recovery is based on “more employment of higher quality.”

Despite the achievements, Spain still has one of the highest unemployment rates in the European Union.

Nearly 14% of Spain’s labor force remains unemployed, more than double the EU average of 6.3%.

However, Spain’s unemployment rate is down significantly from the staggering high reached in 2013, when more than 27% of workers were unable to find a job.

While Spain has more than recovered employment lost to the pandemic, its overall economy still hasn’t bounced back.

The government figures released last week predict GDP won’t recover to pre-pandemic levels until the first quarter of 2023.