Employment: Easier to Destroy Than to Create

From January 2016 to December 2017, 88,932 new workers signed up to the social security scheme in Nicaragua, but since the crisis began in April, more than 86,000 formal jobs have been lost.

Tuesday, August 14, 2018

The number of formal jobs that the Nicaraguan economy took two years to generate, disappeared in the first three months of the political and social crisis that began on April 18.  

According to the most recent figures from the Central Bank of Nicaragua, in line with the year-on-year falls of 4% and 7% reported in April and May, in June the affiliation of 810,430 workers to the social security scheme was registered, 12% less than was reported in the same month in 2017.

In regards to the decline in the level of formal employment, Juan Sebastián Chamorro, executive director of the Nicaraguan Foundation for Economic and Social Development (Funides), explained to Elnuevodiario.com.ni that " ... in this issue of employment there is a very important lesson, that 'in economics things do not go up as easy as they can go down, or to put that in other words, creating is not the same as destroying. In the formalization of employment, we now see that it took 2 years to reach those almost 100,000 INSS affiliates, and almost the same amount was lost in basically three months of socio-political crisis.'"

Chamorro added that " ... as the crisis continues, it will be more difficult to recover those formal jobs. 'For better or for worse, there was a macroeconomic stability that is now being severely affected and, particularly, the worry is how investors are seeing Nicaragua.'"

See the history of the Nicaraguan crisis.

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Nicaragua: Formal Employment Keeps Falling

April 2019

In accordance with the decreases reported last year, in February 2019 there were 755,908 social security workers, 17% less than in the same month of 2018.

The reduction in the number of workers registered with the Nicaraguan Institute of Social Security (INSS) is caused by the behavior of the employment level in the activities of commerce, construction, finance and transport, storage and communications, reported the Central Bank of Nicaragua (BCN).

Nicaragua: 158,000 Jobs Lost in 2018

February 2019

Between December 2017 and the same month last year, the number of workers enrolled in Social Security fell 17%, because of the impact of the crisis affecting the country since April last year.

The latest report from the Central Bank of Nicaragua (BCN) details that between the last month of 2017 and December last year, the number of workers enrolled in Social Security went from 913,797 to 755,874, equivalent to a 17% decline.

More than 100,000 jobs destroyed

October 2018

Due to the political and social crisis that Nicaragua is experiencing, between April and August of this year, around 116,000 employees have stopped contributing to Social Security.

Official figures from the Nicaraguan Social Security Institute (INSS) detail that between April, the month in which the political and social crisis occurred, and August, 115,978 employees have stopped paying their social security contributions.

Nicaragua: Decline in Formal Employment Gets Steeper

August 2018

In line with the year-on-year falls of 2%, 4% and 7% reported in March, April and May, in June 810,430 workers were registered as enrolled in the social security scheme, 12% less than was reported in the same month in 2017.

In relation to the performance of the sectors, the Central Bank of Nicaragua (BCN) reported that in year-on-year terms, most of the activities registered decreases, except for the manufacturing industry activities, and electricity, gas and water, which recorded increases of 1.4% and 0.2%, respectively.

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