The Human Capital Outlook presents its eleventh edition with the aim of providing a valuable tool for the professional and expert community in the fields of labor market, labor relations, and human resources. It seeks to support a better understanding of an increasingly complex and constantly evolving environment.
Quarterly Labor Market Observatory
In this new edition, the evolution of the labor market is analyzed based on the data available up to the second quarter of 2024. The report is structured into three sections:
The first section provides an overview of the main aggregate indicators (employment, unemployment, and economic activity), highlighting the positive performance of employment in terms of net job creation, the increase in hours worked per employed person, the improvement in unemployment rates, the decline in hourly productivity, and wage moderation.
The second section focuses on the differences in employment rates between Spain and other European Union countries. Spain has fallen behind most of the Member States that joined the EU after 2004. This gap can be explained by two main factors: higher growth in the working-age population and a delay in job creation in knowledge-intensive sectors.
Lastly, the third section emphasizes the evolution of occupational segregation between Spanish and foreign workers, as a result of the large-scale incorporation of immigrants into the Spanish labor market.
Legal and Labor Developments
Among the most notable regulatory developments featured in this edition of the Human Capital Outlook is the approval of the Organic Law on Gender-Parity Representation and Balanced Presence of Women and Men, which introduces significant changes in the composition of boards of directors and senior management positions in listed companies and public-interest entities (non-listed companies). It establishes minimum thresholds for the representation of the underrepresented sex.
This law also introduces amendments in the labor domain, requiring parity in trade unions and professional associations. Furthermore, although imperfectly drafted, it provides certain legal protections for victims of sexual violence. Relevant regulatory changes concerning the special employment relationship of professional athletes are also addressed.
In addition to this legislation, the report includes other new laws, ongoing legislative initiatives, and forecasts for future regulatory developments. It also features commentary on three recent court rulings of legal and labor significance.
Human Capital Trends
With regard to Human Capital Trends, this edition focuses on the management of senior talent. Spain’s demographic structure reflects an accelerated aging process, a phenomenon that directly affects companies and poses significant challenges that must be addressed through innovative and adaptive strategies. Managing senior talent is not only a matter of social responsibility but also a key factor for business sustainability and growth.
The implications of an aging labor market and the implementation of effective strategies to manage senior talent—ensuring a smooth transition toward retirement while maintaining a dynamic and productive work environment—are among the key challenges discussed.
The aging of the workforce in Spanish companies reflects not only national demographic trends but also the pressing need to revise human resource management policies. The challenges faced by organizations in managing senior talent are varied and complex, requiring both a strategic and empathetic approach. The rising costs associated with workforce offboarding and early retirements, combined with legislation encouraging later retirement, present a significant financial challenge. Companies must therefore design long-term sustainable compensation and benefits strategies that adapt to the evolving needs of their workforce.
Quarterly publication prepared by the EY – Sagardoy Talent and Innovation Institute
