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What is the level of informality in Peru and Latin America?

Informal employment in Peru affects up to 75% of the population. | Fountain: Andean

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According to a study by the International Labor Organization (ILO), in Latin America every second person works in informal conditions.

According to the report, until the third quarter of 2022 in Latin America employment recovery was occupied by 40% to 80% by the informal sector. But what about informality in Peru?

“In Peru, the occupancy rate was almost 70%, and now it is 69%, but our main concern is not this, but the quality of work that has recovered,” economist Monica Munoz Najar told RPP Noticias.

“There is a high chance that if you had a job and you lost it due to the pandemic, you probably got it back, but the new job is not as good as the one in 2019, or it pays less, or it informalnot have a contract or insurance paid by the employer, or work longer,” he added.

Of all jobs restored in Peru, 75%, or 3 out of 4 jobs, were informal.

Now, according to what is noted in the ILO report, Peru will be the second country in Latin America more informal in the region.

The Latin American country with the highest informality is Bolivia, where 81.5% of its inhabitants were informal until mid-2022, while in Peru informality reaches 73.2% of the population.

Just below Ecuador, with a level informality 68.2%; Paraguay with 61.9%; Dominican Republic with 57.4% and Mexico with 53.3%.

In Argentina, informality is 45.1%, in Costa Rica it reaches 39.4% of the population, in Brazil 37.6% of the population and in Chile 26.1%.

Source: RPP

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