Why employees in Spain are resigning in record numbers

Rising resignations in 2024

by Lorraine Williamson
resignations Spain

By September 2024, over 2.16 million employees in Spain had resigned, marking a 2.72% rise compared to 2023 and a 36.89% increase from 2021. Despite a surge in permanent contracts, working conditions remain a key reason for this trend.

A global trend continues

The phenomenon of mass resignations gained traction in 2022 as employees globally rejected toxic work environments. Two years later, the global job market offers fewer opportunities, yet resignation rates in Spain remain at an all-time high. Precarious conditions and excessive workloads are driving this exodus.

Remote work and the digital nomad shift

The COVID-19 pandemic accelerated a shift toward remote work, and many employees in Spain are now rethinking traditional office roles. A growing number are opting for flexible, location-independent jobs that offer a better work-life balance. This trend has been particularly pronounced among skilled professionals, who see remote work or digital nomad lifestyles as a way to escape rigid corporate environments and poor working conditions.

Spain has embraced this trend by introducing a digital nomad visa in 2023, allowing remote workers to live and work in the country. This policy has attracted international professionals while also enabling Spanish workers to explore remote opportunities abroad. However, this shift has contributed to higher resignation rates as employees leave jobs tied to physical workplaces or rigid schedules.

Historical context: Temporary vs. permanent contracts

Historically, resignations in Spain were more frequent among those on temporary contracts. Before 2022, nearly 29% of workers held temporary roles, with resignations accounting for 60% of terminations. Labour reforms in 2021 aimed to address this, reducing temporary contracts to less than 12.8% and boosting permanent contracts to 72.8%. However, this shift did not reduce overall resignation rates.

Permanent contracts, Persistent problems

In 2024, resignations among employees with permanent contracts surged. Between January and September, over 1.67 million workers with permanent contracts quit, alongside 483,679 temporary workers. This signals a growing dissatisfaction with working conditions, irrespective of contract type.

The war for talent

Certain sectors, such as technology, face intense competition for skilled workers. Employees frequently leave for higher salaries, creating high turnover rates. Labour-intensive industries, including construction and hospitality, struggle even more, as poor conditions push workers to seek better alternatives. This exacerbates labour shortages in these sectors.

Seasonal patterns in resignations

Resignations among permanent employees often peak before the summer, reflecting dissatisfaction in seasonal industries like tourism, agriculture, and hospitality. Poor working conditions in these areas remain a significant factor.

Labour market mobility

High resignation rates contribute to mobility within the job market. Unemployment remains at 11.5%, according to INE data, with many workers cycling through jobs in search of improved conditions. Monthly job turnover stays positive, with new hires replacing those who resign.

Challenges in retention: The role of probationary periods

Employers face growing difficulty retaining staff, as evidenced by a 76% increase in resignations during probationary periods in 2022. Despite minimum wage increases, inadequate improvements in working conditions continue to drive dissatisfaction.

Spain’s high resignation rates reflect profound changes in the labour market, driven by poor working conditions and shifting employee priorities. The rise of remote work and digital nomad lifestyles highlights a demand for flexibility, autonomy, and better quality jobs. Addressing these issues is critical for reducing turnover and ensuring a stable, satisfied workforce. Without significant improvements, Spain will likely continue to face record-breaking mobility and shortages in key industries.

Also read: Top reasons Madrid is the best city for expats and remote workers

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