Employment: Labor productivity fell in four years in 2022

In 2022, Peruvian productivity fell to its lowest level in four years, analysis shows Peruvian Institute of Economics (IPE).

They calculated that the average output generated by each worker last year was SGD 31,873, lower than the SGD 32,226 recorded in 2021 and even lower than reported in 2020 and 2019.

Performance workers it fell to levels not seen since 2018, when it was valued at S$31,867.

But how were these numbers calculated? The IPE indicates that real GDP and the economically active population (EAP) employed in these years are used as a benchmark.

“It’s like we went back about four years. This year’s GDP is expected to be even lower than in 2022, and will private investment negative. It is difficult to raise labor productivity. To resume the growth trajectory (productivity) that was in previous years, additional investment is definitely required, which is reflected in capital or equipment,” IPE economist Fernando González told the Gestión newspaper.

The economist notes that in recent years, the country’s production has grown at a slower pace than employment, while it has been concentrated in lower quality jobs.

It should be remembered that, according to INEI, more than 1 million 644 thousand people live in Lima alone. part-time by income, that is, workers with wages below the minimum SGD 1,025, while at the national level, informality affects about 8 out of 10 Peruvians.

“For metropolitan Lima, and reflected nationally, the biggest increase in employment last year was in companies with fewer than 50 employees, which tend to be less productive. workers there are fewer qualified with more experience, which leads to lower productivity. This is a phenomenon that comes from 2021,” he added.

The IPE points out that better education, training, and technology are needed to increase productivity.