Based on an OECD report in December 2013, unit labor costs have been reduced
3.9% in Spain between the fourth quarter of 2011 and second quarter of 2013,59 although
some of this number has to do with reducing public sector wages. The report estimates
that the labor reforms induced a drop of between 1.2 and 1.9%. Additionally, the report
estimates that the reforms increased the hiring rate by 8%, permanent contracts by 13%,
and full-time open-ended contracts by 18%. Finally, the reforms are projected to have
raised the share of exits from unemployment to permanent employment by about 14%
and increasing small firm start-ups by 30%.