Nicaragua: Formal Employment Keeps Falling

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.

Monday, April 15, 2019

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).

The drop in the level of formal employment in the country is mainly because of the political and economic crisis that began in April 2018, to which is added the recent fiscal reform carried out by the government, which was approved in early 2019.

See "More Taxes in Times of Crisis"

The NCB statement states that "... INSS administrative records indicate that in February the number of insured was 755,908 workers, 16.5 percent lower than in February last year. In year-on-year terms, the number of insured decreased in all economic activities, observing the largest reductions in: trade (-34.6%); construction (-33.5%); financial (-18.9%); and transport, storage and communications (-15.0%).

Likewise, it was observed that the nominal average salary of the affiliates was at 10,941.7 córdobas, registering a 5.3% year-on-year growth. For its part, the real average wage of members showed an annual increase of 1.8 percent
."

See BCN statistics.

More on this topic

One Year in Crisis

April 2019

A drastic fall in productive activity, outflows of investments and the disappearance of thousands of formal jobs are some of the consequences a year after the political and economic crisis in Nicaragua.

In March 2018, CentralAmericaData reported the figures that reflected the economic boom that Nicaragua was experiencing: formal employment grew at a year-on-year rate of close to 3%, economic activity each month recorded year-on-year growth rates of between 4% and 5%, while consumption and imports increased. Only a month later, on Friday, April 19, a series of events occurred that determined a radical change in the trend observed until then. The announcement of the reform of the Nicaraguan Social Security Institute triggered a social, political and economic crisis that the country is suffering so far.

Nicaragua: Formal Employment Continues to Fall

July 2018

In line with the year-on-year reductions of 2% and 4% reported in March and April, the affiliation of 853,396 social security workers was registered in May, 7% less than was reported in the same month in 2017.

Explained by the behavior of most activities, INSS records indicate that in May the number of affiliated workers was 853,396, showing a fall of 7.2% compared to May of last year, reported the Central Bank of Nicaragua (BCN). 

Nicaragua: Formal Employment Continues to Fall

June 2018

In addition to the fall of 2% reported in March, the affiliation of 878,500 social security workers was recorded in April, 4% less than the number reported in the same month in 2017.

The Central Bank of Nicaragua (BCN) reported that according to the administrative records of the INSS, they indicate that between the months of April 2017 and 2018, the number of insured persons decreased from 914,276 to 896,869 workers, which is equivalent to a fall of 3.9%.

Nicaragua: Formal Employment Drops Due to Crisis

May 2018

During the third month of 2018, the affiliation of 896,869 social security workers was registered, 1.5% less than was reported in March 2017.

The Central Bank of Nicaragua (BCN) reported that according to the administrative records of the INSS, in March the number of insured people was 896,869 workers, which is equivalent to a 1% drop compared to February 2018.

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