In September 2016 an annual increase of 10% was registered in the number of workers signed up with the social security department and a 5% increase was recorded in the average nominal wage.
Membership of the Nicaraguan Institute of Social Security (INSS) grew by 9.8% in September compared with the same month in 2015, with noteworthy sectors being trade, hotels and restaurants, with an increase of 18%, transport, storage and communications, with 17%, construction with 15% and community, social and personal services, with 11.5%, according to Central Bank of Nicaragua.
In a context of high unemployment and informal work any increase in the amount of the minimum wage produces more unemployment, more informality, and consequently, more poverty and inequality.
In Costa Rica, the latest numbers released by the National Statistics Institute (INEC) located unemployment during the first quarter of 2015 at 10.1%. If you add those who are not unemployed but who have informal jobs, which is 45.3% of the working population, you can tell why almost half of the population in Costa Rica who wants to work do not get better incomes if the minimum wage is increased.
In advanced economies employment is becoming less stable while those in developing economies are focusing on public policies, which stimulates the growth of informality and, paradoxically, unemployment.
"It's the economy, stupid."
We will use the now famous phrase coined during Bill Clinton campaign against George Bush, to highlight the paternalistic voluntarism which is fashionable in most of the countries of the region, the only effect it has is to marginalize the formal production economy for more and more people, with an impoverishing final effect. Globalization requires more and more competition, which can only be achieved with maximum flexibility using all resources, including human ones. This, which in itself is inhumane, is a reality that should not be overlooked in the definition and implementation of public employment policies, if they are to be successful and sustainable.
Only three out of ten people are employed formally, while the labor participation of women is half that of men, among other reasons, because labor legislation has rigidities that inhibit their employment.
From a statement issued by the Salvadoran Foundation for Economic and Social Development (FUSADES):
The private sector has pointed to the fact that the government lacks clarity and a strategy for productivity and creating conditions for employment.
Constant closures show lack of confidence
The Costa Rican Union of Chambers and Associations of Private Businesses (UCCAEP) said this morning that the rise in unemployment due to recent closures is a national concern which warrants a declaration of emergency.
The country's labor problems could be solved by developing an immigration policy that allows skilled foreign workers to work and also train panamanians.
In his opinion piece Rene Quevedo notes the difficulties facing the Panamanian labor market due to a lack of national technical professionals and because of a preference for adult workers over young people with little experience and training.
The service sector is the fastest-growing (19.9%) with 53,129 social security contributors, about 8,850 more than in the same period in 2012. Up until last September 113,067 new contributors signed up, 15,104 more than the 97,963 reported in the same period last year.
Up until September 113 067 new contributors signed up , 15,104 more than the 97,963 reported in the same period last year.
In Costa Rica there has been a decrease in jobs that requiring mid-level training, and further fall for unskilled jobs, whereas employment of people with advanced professional or technical qualifications has increased.
An article in Elfinancierocr.com looks at the results of a new Survey of Continuing Employment, by the National Institute of Statistics and Census (INEC), noting that "the national employment rate began to decline in the first quarter of 2011, when it was around 51% . However, it rebounded later that year and reaching 57% during the first three months of 2012.
In 2006 there were 957.017 insured people and Panama in 2011, the number exceeded 1,2 million, indicating that the informal sector of the economy has declined.
From a press release from the Ministry of Economy and Finance:
According to the publication "Panama in Figures", from the National Institute of Statistics and Census, in 2006 in Panama had 957.017 registered for social security and for 2011, the number exceeded 1,2 million, indicating that the informal sector of the economy has declined . This is a great reference for estimating the level of formality of the economy, because as people are insured, their working relationship and commercial operations are formalized, said the Director of Economic and Social Analysis at the Ministry of Economy and Finance, Roger Alvarado.
ISP is a public records research company that provides customizable, timely, and accurate pre-employment screening services. Services include criminal history checks, employment and education verifica
Operates in Nicaragua, Guatemala and El Salvador
Phone: (503) 22114047 - (503) 78153569
PRONicaragua, is the Nicaraguan Investment Promotion Agency, established in 2002. We are a non-profit, public-private institution whose mission is to generate economic growth and job creation in Nicaragua by attracting high-quality foreign direct investment. The Agency provides complimentary support services to qualified investors seeking investment opportunities in our country.
Operates in Nicaragua
Phone: (505) 2270 6400