The vast majority of private-sector employees have an open-ended contract (90% in 2015). The use of this type of contract differs from one business sector to another and depends on employees’ socio-professional category.

A large majority of employees who had an open-ended contract in 2008 have still been employed under this type of contract over the following years: more than 70% still had an open-ended contract seven years later. In contrast, only 47% of employees on short-term contracts in 2008 had an open-ended contract in 2015. These people were also more often unemployed or withdrawn from the labour market. The likelihood of being unemployed or inactive and the difficulties in accessing open-ended-contract employment are highest for older employees.

At the start of their careers, the hourly wages for employees on short-term contracts are 7% lower on average than those for employees with open-ended contracts. However, this gap is not due to the type of contract: employees on open-ended contracts are, on average, more qualified, have more experience, are more often executives and less likely to be blue-collar and production workers. All other individual characteristics being equal, people on short-term contracts receive equivalent salaries to those on open-ended contracts. Indeed, the starting hourly wage for people on short-term contracts is on average slightly higher than that of people on open-ended contracts. However, in the long term, having had a short-term contract limits salary progression, even for those who manage to remain in paid employment continuously: salaries progress more slowly with the experience that is gained from short-term contracts than open-ended contracts.