The third edition of Human Capital Outlook is launched at a critical moment for the labor field, where close monitoring of short-term developments will be essential. After a summer in which the post-pandemic employment recovery lost momentum, we now face an autumn full of uncertainty, influenced by the Russian invasion of Ukraine, runaway inflation, and the new landscape of labor relations. Therefore, it is crucial to conduct a thorough analysis of the labor market’s evolution, review recent legislative and jurisprudential developments, and explore the latest trends in human resources.
Quarterly Labor Market Observatory
In this new edition, the Quarterly Labor Market Observatory examines the evolution of the Spanish labor market since April 2022. A key finding is that job creation has lost momentum, and both effective hours worked and output per worker have yet to reach pre-pandemic levels. Additionally, Social Security affiliation data from July and August suggest a stagnation in the number of contributors during the third quarter, adjusted for seasonality.
Regarding the 2022 labor reform, there is an observed increase in terminations of indefinite contracts and a slowdown in permanent employment growth. On the other hand, despite high inflation, wages remain moderate.
Finally, the Observatory highlights three positive aspects in the labor market: the accelerated growth of occupations in STEM and high-tech sectors, a decrease in the rate of young people neither studying nor working (the so-called “ninis”), and an increase in adults engaged in educational and training activities.
Legal and Labor Developments
In this Legal and Labor Developments section, Sagardoy Abogados analyzes several legislative reforms that will significantly impact the labor market. These include the regulation of contributory retirement pensions, introducing greater flexibility and reinforcing their voluntary nature. Changes to the business registration regulations, the promotion of occupational pension plans, the new social security contribution system for self-employed workers, and the Equality Act are also discussed. These reforms will increase labor costs, particularly in a context of inflation and new taxes.
Furthermore, important jurisprudential updates are highlighted regarding the prohibition of prorating extra payments, dismissals of employees on temporary disability, and the failure to notify dismissals to workers’ legal representatives.
Human Capital Trends
The Human Capital Trends section of Human Capital Outlook, prepared by EY’s Compensation and Benefits team, focuses on pay equity—a key topic in today’s labor environment. It analyzes the measures companies must implement to ensure real—not merely nominal—pay equality, including pay registers and audits, as well as job evaluation. It also addresses the obligation for companies to disclose non-financial information, especially regarding diversity and the gender pay gap, in compliance with Law 11/2018. Finally, the section offers recommendations on advancing pay equity, complemented by an opinion piece by Olga Cecilia, EY partner, who provides practical proposals to reduce the wage gap.
Quarterly publication prepared by the EY – Sagardoy Talent and Innovation Institute
