As a result of the spread of covid-19 in the countries of the region and the imposition of strict home quarantines, demand for products and services has fallen considerably in most markets.

This scenario of social distancing and change in consumption habits has forced companies to adjust their operations in order to survive the economic and health crisis.

According to a survey conducted between June 15 and July 3 by the Federation of Business Chambers of the Central American Isthmus (FECAMCO), 84% of companies indicated that their sales have decreased.

Elfinancierocr.com reports that "... 77% of the companies indicated that they have reduced the working hours to approximately 26,000 employees, in what would be equivalent to 32 hours per week on average."

The article adds that "... the companies have great problems of liquidity and 44% said that they will request a credit to face their financial commitments."

Check out the "System for monitoring markets and economic situation in Central American countries", prepared by CentralAmericaData.

Source: elfinancierocr.com

More on this topic

Guatemala: Formal Employment Decreased 3% in 2020

March 2021

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.

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.

Bill to Reactivate Labor Contracts

February 2021

In Panama, a legislative project was submitted which intends to gradually reintegrate the employees to their companies, which have already restarted their activities and which in 2020 suspended labor contracts due to the crisis caused by the outbreak of covid-19.

According to the legislative body, the bill which legalizes the gradual reintegration of the suspended contract workers to their companies and which will be in force until the end of the year, has been pending in the National Assembly since February 8, after the Minister of Labor, Doris Zapata, delivered it to the Presidency.

Labor Market: Revolution and Challenges

July 2020

Faced with the sudden change that the new normal generated in companies, employees are challenged to increase their skills to work remotely, adapt to more flexible contracts and refine their technological skills and cognitive qualities.

Telecommuting has become an everyday occurrence among companies in the region, which have had to adjust to the restrictions imposed by governments due to the outbreak of covid-19.

Bono 14 Payment: Agreement Suspended in Guatemala

July 2020

The Constitutional Court provisionally suspended the agreement that allowed companies that currently do not have the economic capacity to comply with the payment of the Annual Bonus, to reconcile the amortization of the obligation with the employees.

The agreement of the Ministry of Labor (Mintrab) 250-2020, which was published in the Diario de Centroamérica on July 10, stipulates that in order to postpone the payment of the Bono 14, employers who are not in a position to do so due to the economic crisis resulting from the outbreak of covid-19, could make an application to the Ministry.