The video introduces the labor reform by PSOE and Unidas Podemos aimed at reducing the high rates of labor temporality in Spain.

• PSOE and Unidas Podemos approved a labor reform two years ago to address the significant issue of labor temporality in Spain.
• High temporality harms both workers, creating income uncertainty, and businesses by preventing the acquisition of specific training and thus reducing productivity.

The video explains the negative consequences of high labor temporality for workers and businesses in Spain.

• Workers face uncertainty and inability to commit to long-term expenses such as mortgages due to unpredictable income flows.
• High labor turnover prevents employee specialization, harming businesses' productivity and competitiveness.

The video discusses why businesses rely on temporary contracts, despite the downsides, due to high severance costs for permanent employees.

• Businesses use temporary contracts to mitigate high severance costs imposed by labor laws, which can be financially crushing during economic downturns.
• The system encourages companies to lay off newer, less indemnified workers instead of less productive ones, due to the cost structure of layoffs.

The video outlines the objectives of the labor reform and the methodology used, which involved restricting temporary contracts without changing severance structures.

• The labor reform aimed to reduce temporality without changing the incentive system that leads businesses to prefer temporary contracts.
• The reform maintained high indemnities for dismissals and practically prohibited the use of temporary contracts, without addressing the underlying incentive issues.

The video assesses the impact of the labor reform on temporality rates, with a focus on the difference between legal and economic temporality.

• On paper, the temporality rate appears to have halved, but this may not reflect a real decrease in job rotation.
• Fedea's report suggests that economic temporality has not decreased significantly, as job duration has not increased and indefinite contracts are now used for temporary employment.

The video concludes that the labor reform has failed to reduce economic temporality and suggests alternative approaches.

• The continuation of high worker rotation is now facilitated through indefinite contracts and the emergence of 'fijo discontinuo' contracts.
• The reform has not changed the duration of employment, indicating that economic temporality persists.
• True reform should focus on changing the incentive structure of the labor legislation, not just on limiting temporary contracts.

The video concludes by reiterating the failure of the labor reform to effectively reduce job temporality in the Spanish economy.

• Although the reform reduced temporary contracts, it did not address the economic reality of job rotation and high severance costs.
• The reform's success on paper does not translate into real economic change for workers and businesses.