The Bank of Spain sees loss of trend wages and a greater temporality

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The Bank of Spain sees a trend loss of wages and labor income over different generations, since 1967, especially after the 2008 crisis and warns of a worsening in temporary contracts “persistent and gradual”. According to the report Intergenerational labor trends in Spain in recent decades »published this Monday by the Bank of Spain, the duration of temporary contracts for lower-skilled workers was between four and five months in 2005, depending on age, and has passed to the environment of the three months in 2017.

“The decrease is persistent and gradual, and there are no cyclical patterns, so this phenomenon seems to be trending,” he points out, recalling that the proportion of temporary workers has been growing since this contract was introduced in the Economic and Social Agreement. 1984.

In relation to partial contracts, he points out that there is a clear structural trend towards a shorter duration of the working day, which affects all age groups, level and education.

The analysis warns that in recent years this trend has accelerated at the earliest ages, both for the least educated and among young people with medium education.

The article also stresses that average and annual salary incomes have fallen over the different generations, especially since the 2008 economic crisis.

Thus, while low-educated workers born in 1967 received a monthly salary of around 2,000 euros when they were 40 years old or 4,000 euros if they had higher qualifications, workers born in 1977 received less in 2017 than the generation of the previous decade. .

Before the 2008 crisis, the evolution of wages between generations increased slightly and while the typical annual income of a university worker born in 1967 was slightly more than 20,000 euros per year at age 30, at that same age, the income of one born 10 years later it increased to 25,000 euros.

With the arrival of the financial crisis, the annual income curves worsened significantly and the labor income of the less educated younger workers fell from 8,267 euros per year for those born in 1977 to 6,223 euros for those born in 1987.

The Bank of Spain sees this worsening of incomes as a cyclical component, for which it affirms that “it is to be hoped that they are not permanent”, however, it underlines that a good professional development in the medium and long term will be difficult for those young people who entered the labor market in a time of recession. .

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