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 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.
Costa Rican industrialists warn that increasing the minimum wage in the private sector by 34% will cause more unemployment and encourage more companies to operate unofficially.
The bill concerning the minimum wage will endanger plans for new hires in the private sector, and its passage into law could cause more informality and more unemployment. The proposal aims to increase the minimum wage by 34% for unskilled employees in the private sector. With the increase, the salary would go from $534 to $718.
The Supreme Court has ruled to leave in place the veto of the Law known as the Labor Procedure Reform, which allowed strikes to be called on essential services such as ports, hospitals and public transportation.
From a statement issued by the Costa Rican Union of Chambers and Associations in the Private Business Sector (UCCAEP):
- Business Sector considers it to be a benefit to all Costa Ricans
Panama's improvement in the availability index of skilled labor, does not respond to an increase in supply, but to a drop in demand because of a slowdown in the economy.
An article on Panamaamerica.com.pa details the results obtained from the Talent Shortage Survey conducted by Manpower, noting that "... Panama has reduced its deficit of talent and skilled labor by 12 percentage points during the last year, going from 58% to 46%, however, the causes are not so encouraging, since the reduction is due to a decrease in the search for personnel by companies. "
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):
In Costa Rica civil servants earn on average 150% more than workers in the private sector, which contributes decisively to the growth of inequality and lowers the overall competitiveness of human resources.
The private sector is proposing that universities develop courses at a technical level in areas such as electronics or hospitality, rather than just focusing on higher level academic degrees and diplomas.
This shift in the educational system which it is hoped will happen in universities would need to be a public-private joint effort, since, according to presidential advisor Bayardo Arce, "... Low levels of science, technology and innovation have affected economic development .... "
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