The fourth edition of Human Capital Outlook, the quarterly publication of the EY Sagardoy Talent and Innovation Institute, is intended as a practical resource for professionals in the fields of labor markets, employment relations, and human resources. This issue examines the evolution of employment in the post-pandemic period, within a context of economic uncertainty and persistent inflation. It also addresses the impact of the 2022 labor reform, the energy crisis, and the war in Ukraine.
Quarterly Labor Market Observatory
In this edition, the Quarterly Labor Market Observatory analyzes labor market developments in Spain between April and October 2022. The report highlights a slowdown in job creation during the third quarter, both in terms of employment and hours worked, particularly in the private sector. A significant drop in temporary hiring is observed, alongside a surge in permanent contracts—mostly fixed-discontinuous—and a 43% decrease in temporary contracts compared to 2019. This structural change raises medium- and long-term questions.
The report also notes an unusual decline in registered unemployment in October. To better interpret these changes, the Observatory introduces a new metric—“effective unemployment”—which adds to registered unemployment figures those individuals with an active employment relationship but not currently working.
Legal and Labor Developments
In the Legal and Labor Developments section, Sagardoy Abogados reviews a series of measures expected to impact the labor market in the short and medium term. It analyzes new regulations allowing the compatibility of the Minimum Living Income (Ingreso Mínimo Vital) with employment or self-employment income.
It also highlights the Law on Business Creation and Growth, which simplifies business incorporation and access to financing. Changes to pension plans and funds, as well as the European Directive on Adequate Minimum Wages, are reviewed. The 2023 General State Budget Law is also mentioned, as it includes pension revaluation measures and increases in social contributions, leading to higher labor costs.
Finally, the section examines recent judicial rulings and emphasizes the obligations of HR departments regarding the management of employee vacation rights.
Human Capital Trends
The Human Capital Trends section, prepared by EY’s People Advisory Services team, focuses on the international mobility of talent—an area of strategic importance for Spanish companies in the post-pandemic environment. Notable developments include the entry into force of Royal Decree 629/2022, which improves immigration rules and facilitates access to qualified labor for companies. The report also references the Start-up Law, which supports international remote work through the creation of new visa categories.
The report highlights how mobility management has evolved from a compliance-driven approach to one that enables business transformation. It emphasizes the importance of aligning mobility strategies with overall business goals, including advanced talent management, process optimization, and technology integration.
Lastly, the section explores the current challenges of global talent management, such as increased competition, remote work, and sustainability considerations.
Quarterly publication prepared by the EY – Sagardoy Talent and Innovation Institute
