Guatemala: Formal Employment Decreased 3% in 2020

Between December 2019 and the same month of 2020, the number of employees contributing to Social Security decreased 3%, a fall that is explained by the economic crisis generated by the outbreak of covid-19.

Monday, March 1, 2021

Official data show that Sacatepéquez, Quetzaltenango and Guatemala were the most affected departments, as the drop in the number of contributors in these regions amounted to 9%, 7% and 4.5%, respectively.

Fabian Juarez, analyst of the Asociacion de Investigacion y Estudios Sociales (Asíes) told that "... the most drastic impacts were in those departments since Sacatepequez's main activity is tourism, which was totally restricted for almost six months and still maintains certain control measures."

In the cases of Guatemala and Quetzaltenango, formal employment decreased considerably because there are many companies, industries and service businesses operating in those departments, which in this context of pandemic were forced to suspend personnel contracts or reduce their payroll.

Juarez pointed out that "... just as the loss of jobs was exceptional, leaving a serious deterioration in 2020, the recovery of these was also exceptional, although to a lesser extent, in the last months of the year, leaving better prospects for 2021."

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