Proposal for Job Generation

The Guatemalan exporters' guild is proposing a plan for the creation of 981.000 formal jobs in the next four years to the government by 2020.

Friday, March 8, 2019

The plan is called "Returning on Course to Create Formal Employment," and was developed by the Guatemalan Exporters Association (Agexport). The proposal includes three cross-cutting strategic axes: investment attraction, human talent, infrastructure and business facilitation.

The president of Agexport, Connie de Paiz, explained that "... These are not new proposals, but initiatives and tools that, in some cases, are advanced. To achieve the goal, the document also identifies high-impact actions that are needed to be included in the 2020 plans and budgets of the institutions, while others only need clear decisions from January 14, 2020 at 14 hours, such as the implementation of ILO Convention 175, having a strategy to attract investment in strategic sectors, building infrastructure, among other actions."

Paiz added that "... on the other hand, the potential of the export sector is supported, and for this the document outlines 36 sectoral proposals with action lines of admissibility and access to markets, strengthening of competent authorities, research and development of new products, logistics, legal framework and taxes, fight against smuggling."

The six export sectors: Apparel and Textiles, Agriculture, Aquaculture and Fisheries, Manufacturing, Contact Centers & BPO and Services have a place in the proposal of job generation with specific actions to target international markets, taking advantage of the competitive strengths that the country has as the demographic bonus, natural resources, as well as consumer trends in issues such as connectivity, premium products, search for experiences, sustainability, among others, told Agexport in a statement.

See full proposal.

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Guatemala: Recruitment Expectations for 2020

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After in the fourth quarter of 2019, 15% of companies reported that they planned to increase their payrolls, for the first quarter of 2020 this proportion drops to 12%.

Guatemalan employers report moderate hiring intentions for the first quarter of 2020. With 12% of employers expecting an increase in their workforces, 5% predicting a decrease and 83% remaining unchanged, reported Manpower.

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In Guatemala, the debate on the legalization of part-time employment was reactivated, but the regulation, which for years has been promised to be approved, is still not a reality.

The inflexibility of the Guatemalan labor market is an issue of concern to investors, since for years the authorities have been promising to support the necessary changes so that companies can hire staff for the periods they require and not always based on the standard schedule of eight or twelve hours.

Guatemala and the Minimum Wage Discussion

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For agricultural businessmen, the proposal to change the minimum wage discussed nationwide jeopardizes the jobs and incomes of about 500,000 people working in agriculture.

The guild assures that in addition to the 500,000 direct jobs that could be lost, if the proposal is approved, nearly 1 million indirect jobs would also be put at risk.

Labour Market Expectations in III Quarter

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8% of Panamanian companies expect to increase their payrolls, 85% do not foresee changes and 6% anticipate a reduction.

From a report by the ManpowerGroup:

Comparison by Region

In the 3rd quarter of 2018, growth in hiring intentions is foreseen in two regions, Panama City and the Central Provinces, both with a Net Employment Outlook of + 6%. Meanwhile, Colón and Occidente report trends of 0%.

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