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Monday, May 20, 2024

Permanent employment increases on Ibiza by 92.5% with a fourfold increase in the number of permanent discontinuous jobs

The temporary employment rate plummets on Ibiza after the labour reform: in the hotel industry it has fallen to 6.4%, when in 2019 it was 28.2%, and in the restaurant industry it has dropped from 32% three years ago to 12.4% today.

Looking at the employment data for the Pitiusas in March, nothing seems to indicate that we have just emerged from a pandemic that has lasted two years, or that we are experiencing an energy crisis, or that the war in Ukraine is wreaking havoc on our economy. Thus, Ibiza ended that month with 53,901 contributors to Social Security, 8,132 more than a year ago (+17.7%) and 2,023 more (+3.9%) than in 2019, a year before the health crisis began. And Formentera, with 3,035 contributors, added 13.8% more than in 2021 and 2.7% more than three seasons ago. In Ibiza’s case, there have never been so many jobs in March in its history. In Formentera’s case, there were not, as the figure reached in 2018 was higher (3,120).

But more important than the quantity is the quality of those jobs. The new labor legislation, which drastically limits temporary contracts, has left its mark on the latest labor statistics: Temporary roles have been reduced to 6.4% in accommodation services in Ibiza, when in 2019 it amounted to 28.2%; in the case of food and beverage services, it has gone from 32% three years ago to 12.4% today; in transport, from 21.7% to 13.1%, and in the rest of the economy (that which is not directly related to tourism) it is now 38.8%, 20 percentage points less than in 2019. The rate of temporary employment of the Ibizan labor market is 22.5%, well below the 35.7% of three seasons ago in March.

88% permanent employment in tourism

And while the temporary employment rate plummets, the number of permanent employees is growing (a lot). In Ibiza, 88% of workers in the tourism sector are now permanent, compared to 70% three years ago: there are a total of 10,628 permanent employees, which is 5,109 more than a year ago (+92.5%) and 2,657 more than in 2019 (+33.3%). However, most of the new permanent employees are permanent discontinuous: the number has increased by 310%. There are now 6,273, four times more than in 2021 (+4,744) and almost 66% more than in 2019 (+2,491).

And while the temporary employment rate plummets, the number of permanent employees is growing (a lot). In Ibiza they are now 88% of the workers in the tourism sector

Decoration

For the full article, please visit Diario de Ibiza website here.

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