CADE 2022: Employment in Peru is still at risk

According to the latest data from the National Institute of Statistics and Informatics, in Peru, only two out of 10 people have a formal job that offers social benefits and remuneration in excess of 1025 sols.

The other side of the coin is informality, which affects 76% of Peruvians and continues to progress after the pandemic. Development Research Network Economist Paola del Carpio commented on this at CADE 2022.

” Work he has not yet completed his recovery from the pandemic. Yes, it has recovered in terms of the number of jobs, but informal employment and underemployment have grown much stronger, and inflation is added to this, which reduces the purchasing power of people, ”he explained.

Experts argue that investment is needed to stimulate formal employment and social development.

For the President of the Labor Association, Luis Villanueva, it is mainly required private investment to advance in the labor market.

“We understand that in order for private investment to come to the country, there must be conditions, one of which is political stability, predictability and commitment,” he commented.

One of the sectors that generates a large number workplaces in the country it is tourism, which before the pandemic added 1.3 million direct and indirect jobs.

Casa Andina Hotels CEO Juan Stoessel notes that there are three jobs for every foreign tourist who enters the country, but warns that the lack of executive control is hindering progress in his sector.

“Without a doubt, our industry has suffered the most and this has created serious problems in employment opportunity. We are improving, but we are still a little far from the recovery of 2019, and it is clear that the executive branch did not help us at all, ”he said.

Given the urgency to create more formal employment in the country, CADE 2022 participants agree that institutionalization is required and that the state is developing measures where workers and employers agree.

Currently President of the National Confederation of Private Business Institutions (trust), Oscar Kaipo, points out that there are no conditions yet for a return to the National Council for Labor and Promotion of Employment (CNTPE), but assured that they will look for alternative platforms to combat informality and other labor problems.