Due to the economic crisis it is estimated that by the end of 2020 Panama will have 400 thousand new unemployed and the unemployment rate will climb to 25%, assuming that the country generates between 45 thousand to 50 thousand jobs annually, it will take about eight years for the recovery to take place.
The outbreak of covid-19 caused a serious economic crisis in the country, since due to the spread of the disease the authorities have decreed severe home quarantines, mobility restrictions and have limited some productive activities.
It is estimated that between 2015 and 2020, Panama will need to hire around 68,000 employees with technical specialties, and the logistics sector will be the leader in the demand.
According to a labor market study carried out by the Ministry of Labor and Labor Development (Mitradel), estimates for from demand companiesfor technical personnel is high, with the logistics, industry, tourism, agriculture and construction sectors being those that most need staff with these capabilities.
At the end of the first quarter, there were 71,043 new employment contracts, 3% more than in the same period in 2016.
The latest report by the Comptroller General of the Republic states that in March, 28,355 new labor contracts were registered with the Ministry of Labor, 22% more than in March of the previous year.
The union of builders is opposed a bill creating a paid paternity leave for workers, arguing that there would be economic repercussions for businesses.
From a statement issued by the Panamanian Chamber of Construction:
The Panamanian Chamber of Construction described the measure as being inconsiderate of the large economic impact it would have on companies, after the initiative was put forward by the Minister of Labor and Workforce Development (MITRADEL), detailing the creation of paid parental leave for workers with the intention of maintaining an egalitarian gender policy with regard to women.
In job fairs convened by the State over the last two years only 35% of the job offers by companies were able to be filled.
The problem of a labor supply not matching the demands of the private sector persists in Panama, where companies have to invest time and money into order to cover the limitations of graduates of the public education system, which is putting a brake on development.
In order to protect sources of employment the Panamanian government wants the US to grant permissions so that Waked Group companies can temporarily transact with US citizens and businesses.
From a statement issued by the Ministry of Economy and Finance (MEF):
Objective is to protect the jobs of Waked companies
Treasury Department has been asked to grant a license.
A ministerial group has been created to find solutions for keeping these sources of employment going and the involvement of state banks has not been ruled out.
A commission at the Ministry of Economy, Labour and Commerce has been announced, which will include representation of the Groups Wisa and Vida Panama in order to address saving the thousands of jobs at risk.
A call has been made for the labor migration legislation commission to review and assess extending the rules for work permits.
From a statement issued by the Ministry of Labour and Social Development in Panama:
Labour Minister, Luis Ernesto Carles, announced that on April 6 the Commission on Labor Migration will be convened, to deal with the revision of the current rules and make any changes regarding the extention of work permits.
Panama's improvement in the availability index of skilled labor, does not respond to an increase in supply, but to a drop in demand because of a slowdown in the economy.
An article on Panamaamerica.com.pa details the results obtained from the Talent Shortage Survey conducted by Manpower, noting that "... Panama has reduced its deficit of talent and skilled labor by 12 percentage points during the last year, going from 58% to 46%, however, the causes are not so encouraging, since the reduction is due to a decrease in the search for personnel by companies. "
It has been announced that in June the private sector together with the government will define the methodology for wage increases, taking into account labor productivity and the cost of living.
How productive are workers for Panamanian companies is one of the elements that is to be taken into account in the way that the minimum wage adjustments will be defined from June.
The Ministry of Labour has introduced a bill which would require construction companies to pay from $19,000 to $100,000 per project and which would go to the Fund for Occupational Safety, Hygiene and Health.
From News from Panama's National Assembly:
The Minister of Labor and Workforce Development (MITRADEL), Luis Ernesto Carles, presented on Tuesday before the plenary of the National Assembly a bill that which adopts measures in the construction industry, in order to reduce the incidence of accidents in the workplace.
The government of Panama has announced that it will liquidate the assets of the concessionaire of the mine El Molejón in order to pay outstanding debts after the company failed to appear before the Ministry of Labour.
After the company failed to appear twice, the Ministry of Labor and Workforce Development (Mitradel) of Panama has announced that it will liquidate the assets of the company in order to compensate employees.
The Ministry of Labor has retained office goods and the quarry belonging to Petaquilla Gold mining as part of measures to ensure the payment of wages of workers in the mine.
Despite rumors of the stoppage of the extraction process due to lack of capital to continue operations, the mining company is not bankrupt, but owes its employees about $3.5 million. It is expected that by 29th to 31st of October, the company will pay the fees.
The government and the private sector are preparing a plan to provide technical training to one thousand Panamanians per year in areas such as logistics, trading, freight and customer service.
An assessment made by the Ministry of Labor and Development of the Workforce in conjunction with 20 productive sectors concluded that "... Although there is a positive trend in employment generation, reaching an average of 8.1% annually, domestic firms have been limited in their efforts to fill vacancies. "
A strike has been announced as part of the negotiation of a collective agreement, bringing risk to one of the most dynamic sectors of the Panamanian economy.
In the absence of an agreement between the Panamanian Chamber of Construction (CAPAC) and the Trade Union of Construction Workers and Similar (Suntracs) to sign the collective agreement, the union has announced strikes in the sector.
español
7944
