Despite a mild recovery in some sectors, the economy has shredded 5.000 jobs in the first four months of the year.
Carlos Acevedo, president of the Central Bank of El Salvador (BCR), noted that the figure is an improvement when compared to the same period of 2009, when the economy lost 40,000 jobs.
According to Acevedo, the employment market will recover no earlier than October 2010.
In the first quarter of 2010, the country’s textile and apparel industry has recovered 2.800 jobs from a total of 10.000 lost in 2009.
The textile industry is one of the leading employers of the country. Its representatives consider that the sector is starting to reactivate, together with economic recovery in the U.S.
“In February there were 66.206 people working in the textile industry, according to data from the Salvadoran Social Security Institute. In December 2009 there were 63.343”, reported El Salvador.com.
Employment in the Salvadoran construction industry has dropped to its lowest level in 12 years.
Data from the Salvadoran Chamber of Commerce showed that 21.078 people currently work in this sector. The lowest previous level was recorded on 2005 with 26.311 jobs.
Ismael Nolasco, director of the chamber, explained that “public investment is now facing what has long been a problem in the private sector: excessive paperwork … another problem is lack of financing”.
Most of the jobs lost have been in the transport, restaurant and hospitality sector.
Stats from the Salvadoran Social Insurance Institute show that 42.444 people worked in the tourism sector in 2008. This number stands now at 41.064 workers, a 3.3% drop.
"Jobs in the food and beverage sector have adjusted to reality, as restaurants have now less customers", said Pedro Dalmau, president of the Restaurants Association of El Salvador, when interviewed by newspaper La Prensa Gráfica.
Human Resources companies report a 50% decrease in middle management hiring.
Eric Quesada Ramírez, Manpower's regional director, said that salaries have also been affected.
"Where companies offered a monthly salary of $1.000 for management services, they are now offering $700", told Quesada to Elsalvador.com. "If the worker wants more than these $700, then the company looks for another candidate".
The Fruit of the Loom textile company halted operations at one of its 7 plants, temporarily suspending 25% of its personnel.
The chairman of the Salvadoran Chamber of Textiles and Apparel reported to La Prensa Grafica that the decline in operations is due to "Fruit of the Loom clients being overstocked with product and adjusting inventories.”
The official added that the company intends to continue in the country: "It's a suspension, not a closing. Fruit continues to be interested in remaining in El Salvador until there is an economic upturn in the US."