Companies that hire people aged between 18 and 29 years will be able to deduct from income tax between 3 and 5 minimum wages, depending on the number of young people they hire.
With the amendment to the Incentive Law for the Creation of First Employment for Young People in the Private Sector, adopted by the Assembly, tax exemptions are established for businesses that hire young people aged between 18 and 29.
The ILO Convention approved through Congress establishes a legal framework for hiring part-time employees, based on the principles of proportionality.
The Congress of Guatemala approved Convention 175 of the International Labour Organization (ILO), which sets standards for part-time employment and is based on the principles of proportionality and non-discrimination.
For the first quarter of 2017 22% of the business sector plans to hire more staff, mainly in the sectors of manufacturing, trade and services.
From a statement issued by ManpowerGroup Guatemala:
Guatemala, December 13, 2016-According to the Survey Manpower Employment Outlook for 1Q 2017 published today in Guatemala, employers report optimistic hiring plans for the period from January to March.With 22% of employers expecting to increase their levels of recruitment, 6% anticipating a decrease, 70% staying the same and 2% who did not know, the Net Employment Outlook is + 16% once the seasonal adjustment has been made.The survey reveals an increase in hiring prospects of 7 percentage points in quarterly comparison and by 1 percentage point in annual comparison.
In the first eight months of the year 303,464 new employment contracts were recorded, most of which were in the province of Panama.
A report by the Ministry of Labor and Workforce Development said that of the total contracts signed between January and August this year, 119,985 corresponded to fixed-term contracts, 109,579 to contracts for specific jobs, and 73,900 for indefinate permanent positions.
Sales, operations and production are the areas in which Guatemalan entrepreneurs face the most difficulties in recruiting staff with the necessary skills.
Leadership, the ability to make decisions and to identify and solve problems are the skills most required by companies in Guatemala, and the most difficult ones to find when hiring staff.
In Costa Rica approval has been given to a trust fund through which private companies will be paid $2,700 for each employee hired from the vulnerable population.
The government initiative that aims to pay companies around $2,700 per employee hired from the vulnerable population, has won its first endorsement to be included in a trust administered by Banco Popular.
In Central America, the youth unemployment rate is estimated at over 24%, while in Germany, where the dual education is practiced, youth unemployment is 6%.
EDITORIAL
A visit to Costa Rica by the German Education Minister has put back on the table the concept of dual education, an education method where time is shared between the traditional classroom and work as an apprentice in a trade or professional specialty, in a company.
For the first quarter of 2016 the business sector has projected a 4% increase in hiring, primarily in companies in the communications and transport sector.
From a statement issued by Manpower Guatemala:
GUATEMALA, December 8, 2015 - According to the Manpower Employment Outlook Survey for 1Q 2016 published today in Guatemala, employers report optimistic hiring plans for the period from January to March.
The government of Costa Rica will pay $2,700 per person to enterprises hiring in vulnerable sectors and whose staff remain in their posts for at least 12 months.
From a statement issued by the Presidency of Costa Rica:
Promoting job creation in two ways: an economic benefit to businesses that hire people and training in dual education.
· Registration of companies and individuals at the website www.miprimerempleo.cr
In August 21,562 new employment contracts were recorded, an increase of 3% compared to the same period in 2014.
The construction sector saw the most new jobs created in August, with 8164 new contracts generated, more than the 7534 registered in the same month in 2014.Followed the construction sector was trade, hotels and restaurants, manufacturing, and financial services.
The communication and technology sector predicts that for the next two years it will hire more technical staff and university graduates than licensed professionals with master's degrees or doctorates.
The need for staff with technical rather than academic skills continues to grow in the field of technology and communications. A study by the Chamber of Information Technology and Communication concludes that only 2% of companies in the technology sector in the country plan to hire professionals with a PhD, while only 32% said they expected to hire graduates.
The Assembly will resume discussion of a bill which seeks to regulate the processes of outsourcing and subcontracting personnel by companies in the country.
According to deputies who support this initiative, the purpose is to regulate companies which provide outsourcing services and, in some cases, avoid paying employee benefits.
The special tax regime for multinationals which have an established site in Panama remains the main factor, while the low supply of trained personnel has been identified as a serious problem.
In addition to tax incentives offered to companies that set up offices, there are also special areas such as Panama Pacific and the Colon Free Zone, whose special schemes offer other incentives for companies to set up there.
The difficulties faced by companies in hiring high-profile executives are driving growth in the recruitment market in the country.
With the advent of more multinational companies in the sectors of logistics, banking and insurance, there is growing demand for qualified personnel to fill positions of managers, vice presidents or directors.
The categories with the largest increases in the rate of recruitment between January and March were the Retail Trade, Wholesale Trade, and Other Services.
Despite the economic slowdown, companies from various sectors are achieving good results and hiring more staff. In the first three months of the year the wholesale, retail and other services categories showed increases of 2.8%, 3.5% and 2.9% respectively compared to the same period in 2013.