The Human Capital Outlook presents its tenth edition with the objective of providing a valuable tool for the professional community and experts in labor market analysis, labor relations, and human resources. Its purpose is to support the understanding of an increasingly complex and constantly evolving environment.
Quarterly Labor Market Observatory
In this edition of the Human Capital Outlook, the first section is dedicated to the Quarterly Labor Market Observatory, which examines the evolution of the labor market based on data available through the first quarter of 2024. The analysis is divided into three sections:
The first section reviews the main aggregate indicators—employment, unemployment, and economic activity—highlighting the increase in job creation and the containment of labor cost growth. This occurs in a context where, despite the rise in GDP per hour worked, real productivity per employed person continues to decline.
The second section analyzes changes in the discrepancies between employment and unemployment figures derived from administrative records and those from the Labour Force Survey (Encuesta de Población Activa, EPA), following its recent update based on the 2021 census. While permanent hiring continued to increase in 2023, a significant decline in the conversion of temporary contracts into permanent ones was observed.
Finally, the third section presents a sectoral analysis of Spain’s persistent labor productivity gap compared to the Economic and Monetary Union (EMU), a disparity that has widened over the past decade.
Legal and Labor Developments
Among the most significant regulatory developments of the quarter is Royal Decree-Law 2/2024 of 21 May, which introduces urgent measures to simplify and enhance unemployment assistance protections, while also completing the transposition of Directive (EU) 2019/1158 on work-life balance for parents and carers.
This Royal Decree-Law amends key aspects such as unemployment benefits and allowances, the compatibility of minimum income support with employment in certain cases, and adapts the Basic Statute of Public Employees. Furthermore, it incorporates into the Workers’ Statute the contents of the repealed Royal Decree-Law 7/2023, introducing new provisions on the concurrence of collective agreements.
The report also reviews other recent legislative measures, ongoing legislative initiatives, and includes an analysis of three recent judicial rulings of relevance in the legal-labor field.
Human Capital Trends
The Human Capital Trends section of this edition addresses the growing challenge of workplace absenteeism in Spain, where absenteeism rates significantly exceed the European average. This phenomenon directly affects productivity, business competitiveness, and may generate uncertainty among international investors.
The analysis identifies both external causes—such as economic conditions, healthcare policies, and labor regulation—and internal causes, related to organizational structure, compensation, and work-life balance policies. Individual factors such as health status, family responsibilities, and work-related stress are also considered.
The report emphasizes the importance of promoting healthy, inclusive workplaces focused on the physical, emotional, and professional well-being of workers. Effectively addressing absenteeism requires a cross-cutting approach that integrates multiple human resources functions and promotes resilient, innovative, and socially committed organizations.
Quarterly publication prepared by the EY – Sagardoy Talent and Innovation Institute
