The Human Capital Outlook presents its ninth edition with the objective of providing a comprehensive overview of the evolution of the Spanish labor market, an analysis of the most recent legal and labor developments, and an evaluation of best practices in human resources and talent management.
Quarterly Labor Market Observatory
The first section of this edition presents the key findings from the Quarterly Labor Market Observatory, which analyzes the evolution of the labor market based on data available through the fourth quarter of 2023. The report is structured in three parts. The first part offers an assessment of the main aggregate indicators—employment, unemployment, and economic activity—highlighting that employment growth was more moderate compared to the third quarter of 2023. The second part continues the monitoring of the 2022 Labor Reform, which began in the first edition of this observatory. The temporary employment rate remained stable throughout 2023. While permanent hiring continued to rise, there was a significant decline in the conversion of temporary contracts into permanent ones. Finally, the third part focuses on resignations and voluntary terminations. One of the most notable developments since the implementation of the Labor Reform has been the increase in voluntary Social Security deregistrations by workers with permanent contracts.
Legal and Labor Developments
This edition’s legal and labor updates section, prepared by Sagardoy Abogados, analyzes the main legislative developments that occurred during the third quarter of 2023, with special attention to those regulations that significantly impact the labor field.
On the legislative front, several important changes have taken place. Most notably, Royal Decree 145/2024 sets the minimum interprofessional wage for 2024 at €37.8 per day (€1,134 per month). Among ongoing legislative initiatives, attention is drawn to the amendment of Royal Decree 901/2020 on equality plans and their registration, as well as proposed changes to the Royal Decree governing the registration and deposit of collective labor agreements. The Sustainable Mobility and Family Law Bills are also highlighted.
In terms of judicial developments, the report emphasizes recent rulings from the Court of Justice of the European Union (CJEU), including the judgment issued on 20 February 2024, which stresses the obligation to justify the termination of a fixed-term contract—even if proper notice is given—and examines the potential discrimination in failing to inform the temporary worker of the reasons for the termination.
Human Capital Trends
The third section of this edition, dedicated to the analysis of best practices in people management, addresses two current topics: the promotion of occupational pension plans and the gender pension gap.
As of 1 January 2024, the average Social Security pension stood at €1,435 per month. However, there is a marked disparity between the average pensions received by women (€1,130) and those received by men (€1,646), resulting in a monthly gap of €516—or 31.35%. This disparity highlights not only an issue of equity and social justice but also raises concerns regarding the sustainability of the pension system and the future well-being of retired women.
In light of this, we encourage companies, employees, and social partners to take full advantage of the opportunities offered by Occupational Pension Plans to develop and implement measures aimed at closing the gender pension gap.
Quarterly publication prepared by the EY – Sagardoy Talent and Innovation Institute
