The economic recovery paints a new employment picture in Spain: flexibility is the new clear driver. Jobs are more precarious, wages have shrunk.
Fedea researchers estimated that 16% of the permanent contracts in 2007 were transformed into autonomous or temporary ones, with income losses for workers between 10 and 50%. Of the indefinite contracts, 18% disappeared.
New hires are mostly temporary and in many cases workers can group together a lot of temporary contracts which might eventually lead to permanent ones. But employers are still leery of the indefinite contract and want to remain as free as possible to be able to dismiss workers if things get complicated.
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