The Human Capital Outlook, the quarterly publication of the EY Sagardoy Talent and Innovation Institute, aims to serve as a practical resource for professionals in the labor and employment fields. This edition analyzes employment trends in a context marked by higher-than-expected inflation, the growing impact of interest rate hikes, and rising labor costs resulting from increased social contributions and collectively agreed wage increases.
Quarterly Labor Market Observatory
This edition of the Labor Market Observatory examines the sharp decline in temporary employment contracts between April 2022 and January 2023, during which time there was a notable increase in standard open-ended and fixed-discontinuous contracts. At the same time, job stability declined among those with newly signed permanent contracts.
To more accurately capture unemployment trends, the concept of “effective unemployment” is introduced. This measure reveals an increase of 346,000 people, in contrast to the stability of the registered unemployment figures. The report also addresses structural trends, including growing difficulties in filling vacancies and the impact of demographic aging on employment—especially the mismatch between the types of jobs vacated by retirees and those taken up by younger workers. On a positive note, the continuous rise in lifelong learning across all age groups and educational levels is highlighted.
Legal and Labor Developments
The Legal and Labor Developments section, prepared by Sagardoy Abogados, provides a chronological overview of the most significant legislative and judicial developments affecting the labor sector. Numerous legal reforms enacted in the first quarter of 2023 are covered, including Royal Decree-Law 1/2023 on hiring incentives and the setting of the minimum wage (SMI). The section also analyzes the impact of recent laws related to equality, employment, and whistleblower protection, as well as several legislative initiatives still under review.
In addition, the report includes an overview of key court rulings addressing issues such as dismissals during the COVID-19 context, compensation calculations for fixed-discontinuous workers, working time records, and the registration of equality plans. This section offers a comprehensive view of the current, evolving legal and labor landscape.
Human Capital Trends
In the Human Capital Trends section, the EY People Advisory Services team examines how digital transformation is redefining the role of Human Resources leaders. Digitalization, hybrid work models, and the need for new skills have positioned HR leaders at the forefront of decision-making regarding technology and innovation.
The report explores how tech solutions can enhance the employee experience, promote well-being, and align talent processes with business goals. The main challenge lies in achieving a more flexible and adaptive integration between people and technology, where change management becomes a critical success factor.
This edition invites readers to reflect on how to harness these transformations to address the major organizational challenges of 2023.
Quarterly publication prepared by the EY – Sagardoy Talent and Innovation Institute
