Spain: The 2006 labour market reform, one year on

Official statistics issued in May 2007 indicate that the labour market reform measures agreed by the government and social partners a year previously – notably promoting open-ended contracts rather than fixed-term ones – are having an effect.

The May 2006 reform agreement provided incentives for employers to recruit from certain groups (such as women, young people and older workers) on open-ended contracts, and to convert existing fixed-term contracts into open-ended ones.