In the current scenario of economic crisis, during the mobile quarter from August to October 2020 the unemployment rate at the national level was 21.9%, a proportion similar to the 22% reported from July to September.
The National Institute of Statistics and Censuses (INEC) reported that for the August, September and October 2020 moving quarter, the population of 15 years old and older with an incidence of labor due to the effect of Covid-19 was 1.13 million people (28.3%). The incidence of labor in the labor force was estimated at 981,000 people (40.8%). A total of 474,000 employed people (25.2%) have some incidence of the pandemic in the workplace. Of the unemployed, 507,000 people (96.3%) were affected in their search for employment. Finally, the labor incidence caused by the emergency affected about 154 thousand people (9.6%) outside the workforce.
Because in Costa Rica the regulations authorizing companies to reduce working hours expire in December 2020, businessmen in the tourism sector are asking the Assembly to extend the deadline.
When the first cases of covid-19 were registered, the "Law Authorizing the Reduction of Working Days in view of the National Emergency Declaration" was approved. The validity of this regulation expires next December, but, the businessmen see the need to extend its validity.
In the current scenario of economic crisis, during the third quarter of the year the unemployment rate nationwide stood at 22%, a proportion that is lower than the 24.4% reported for the mobile quarter from May to July.
According to the report released by the National Institute of Statistics and Censuses (INEC), 42% of the people who were unemployed during the third quarter of 2020 said that they had less than three months to look for work.
Modifying the Labor Code to allow companies to implement the exceptional extended workday of 12 hours a day, is a proposal being discussed in Costa Rica due to the need of industries that depend on continuous processes and encounter obstacles in the law.
In the Commission of Treasurers of the Legislative Assembly is initiative number 21,182, a parliamentary proposal that seeks to modify the Labor Code and update it according to present needs.
By the fourth quarter of 2020, 21% of companies in the country expect to reduce their payrolls, a proportion that is higher than the 14% registered in the third quarter of this year, a rise that is explained by the economic crisis generated by the covid-19.
Panamanian employers report negative hiring expectations for the October-December period. Three percent of the employers expect to increase their workforce, however, 21 percent expect to reduce it, while 68 percent remain unchanged, resulting in a Net Employment Trend of -18%.
In the context of the economic crisis in Costa Rica, by the fourth quarter of 2020, 6% of employers plan to increase their payrolls, a share that doubles the 3% registered for the third quarter of the year.
Although Costa Rican employers report weak hiring intentions for the October-December period, these have improved slightly when compared to the July-September outlook.
After the Guatemalan Constitutional Court suspended the implementation of differentiated salaries in 2015, the Giammattei administration plans to discuss the application of regional minimum salaries during 2021 and the plan is for them to enter into force in 2022.
In 2015 the Guatemalan government established differentiated salaries for the municipalities of Masagua in Escuintla, Guastatoya and San Agustín Acasaguastlán in El Progreso and Estanzuelas in Zacapa.
Focusing the skills of employees according to new opportunities and approving laws that allow for more flexible labor agreements are some of the proposals being discussed in Guatemala for companies to face the new labor reality.
Following the economic crisis that caused the outbreak of covid-19, the recovery and generation of jobs is one of the issues that occupies much of the attention of the government in Guatemala.
As part of the process of reopening the Panamanian economy, it is estimated that in the last two weeks close to 90,000 work contracts have been reactivated, which represents 30% of the suspended labor agreements.
Due to the outbreak of covid-19 and the restrictions imposed by the Panamanian authorities on most economic activities, from March to date about 292 thousand labor contracts have been suspended.
The National Assembly approved in third debate the draft law establishing temporary employment protection measures in companies affected by covid-19.
The initiative presented by the Executive received several modifications in its original content, both in the first and second debate, leaving the deputies with the reservation that these are temporary rules and are not intended to a future reform of the Labor Code, the Assembly reported.
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.
In the context of the economic crisis, it is estimated that companies in Central America have reduced the working hours of employees to an average of 32 hours per week.
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.
Restrictions on the movement of vehicles and people, and to some extent, the ban on office work, are forcing companies to reinvent their ways of operating and revolutionize their work culture.
Following the spread of covid-19, strict home quarantines were decreed in Central American countries. This scenario boosted the implementation of teleworking and forced companies to adapt to a new way of operating.
A decree was published in Panama authorizing the modification or temporary reduction of the working day, which due to the economic crisis generated by covid-19 may be reduced by up to 50%.
The new regulation establishes that the agreement to modify working hours must include methods to achieve the gradual recovery of working hours to the levels existing before the crisis and that they must not affect the hourly rate agreed in the current employment contract, reported the Ministry of Labor and Labor Development.
In this scenario of economic crisis, the Ministry of Labor has extended for the fourth time and for 30 more days, the provision that allows companies in the country to suspend the contracts of their employees.
Executive Decree No. 100 of July 1, 2020 authorized a further extension of the temporary suspension of the effects of employment contracts, which will apply automatically for a period of 30 calendar days in companies whose operations have not been reactivated according to the plans for a gradual return to economic activity, reported the Labor Ministry.