Spain’s labour market is expected to see a slowdown in 2023, according to a forecast from Randstad Research in Spain.

The research also forecasted that the unemployment rate is expected to increase slightly this year in relation to the average rate of 2022, standing at 13.1% (compared to 12.9% in 2022). The volume of unemployed persons is expected grow during 2023, once again standing above three million on average, with an estimated year-on-year variation of 2.5%.

As for the number of employed persons, Randstad expects the growth in the volume of employed workers to moderate in 2023. While 2022 saw a year-on-year increase of 3.8%, looking to 2023, the increase is expected to stand at 1.2%, reaching an average of 19.3 million employed persons.

Randstad’s study has also analysed hiring patterns, one year after the entry into force of the labour reform. The Spanish government claims the new reforms aim to reduce the country’s high number of temporary contracts and avoid layoffs.

The research from Randstad found that in FY 2022, 7.03 million permanent contracts were signed, while in the previous year the figure was 2.12 million. At the same time, temporary hiring saw a reduction in the same period by 5.99 million, going from 17.27 million to 11.28 million.