Increased turnover of permanent contracts

It seems that one of the consequences of the labor reform is an increase in the turnover of permanent contracts, specifically 21% of workers had to sign more than one contract last September, and this means that the turnover of permanent contracts has multiplied by five, if compared to the figures before the labor reform.

11/1/2022

In December 2021, 171,900 people signed an indefinite contract, and of these, 1808 had to sign more than one, and in the following nine months the figures increased and became 735,872 and 39,984 respectively.

The total number of those who signed a stable contract multiplied by 4.2, but those who signed more than one multiplied by 21, and this uneven increase has a direct consequence on the turnover rate, which went from 1.09% to 5.43%.

It should be noted that this information refers to indefinite contracts, which theoretically must have a duration of more than a month, which is why this increase in the turnover rate in this type of contract is so striking.

In this whole scenario, it seems that the types of contracts that have been signed the most are permanent, intermittent, and part-time, and this implies permanent jobs, but with worse salary conditions, and this may be the trigger for changing jobs more often, or for having several.

Another fact that draws attention is that the increase in this ratio was very intense during the first quarter of 2022, slowed down from May, and has picked up again from September.

Permanent contracts

Therefore, it is clear that there are important changes in the labor market that companies must be prepared to face, and this can be done more easily with time and project management tools like Timenet.

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