The Dane published the results of the Colombian labor market corresponding to the month of July. The national unemployment rate registered 11%, 2.1 percentage points less than the same period of the year 2021. Although more than 1.6 million jobs were recovered compared to twelve months ago, the total number of unemployed in the country is 2.72 million compatriots.
The reactivation path continues to generate a downward trend in unemployment, which reports declines in the annual comparison, but remains above two digits. The markers of jobs in the national economy remain the same: manufacturing industries -with 279 thousand jobs- closely followed by public administration -272 thousand- and transportation and accommodation -247 thousand-.
The recovery of artistic and entertainment activities -the so-called ‘last ones to open’- continues with a generation of 214 thousand new jobs. Although the return of women to the workplace -thanks to the lifting of restrictions, vaccination and the end of quarantines- lowered female unemployment in July by 3.4 percentage points, the gender gap between men and women (8. 8% for men and 13.9% for women) is still high.
Of the 1.6 million jobs created, 736 thousand are considered informal. This gives a national informality rate of 58%, just 1.1 percentage points less than in July of last year. Along with the generation of jobs, another front of attention is that of the quality and characteristics of the jobs. The Caribbean capitals, plus Quibdó and Cúcuta, register percentages above 60% in terms of informality. They are clearly proportions that should deserve a direct and focused approach.
This is the last labor market report that corresponds to the past administration of Iván Duque. Although the reactivation path promoted by the previous government managed to recover all the jobs destroyed by the historic shock of the covid-19 pandemic, double-digit unemployment permanently impacts the income generation of millions of Colombian householdsas well as their capacities to get out of poverty.
In fact, in the most recent Invamer survey, the expectations of the inhabitants of the five main capitals of the country in terms of unemployment and the economy are high: while 38% consider that the economic agenda, including jobs, are the main problem facing the country today, 30% consider that the unemployment situation is improving. It is evident from these opinion measurements that, beyond the tax reform, Colombians expect tangible improvements from the Petro government in labor and household economic issues.
The Casa de Nariño and its economic team must include, as soon as possible, a shock plan to create jobs throughout the national territory within their priorities for the first semester of the administration. Especially since the economic outlook for the remainder of 2022 and for next year reflects a drastic reduction in the rate of growth, which will make it difficult to open vacancies. In addition, some measures of the tax reform project, which contemplate more tax burdens for companies, as well as the first announcements about a future labor reform, generate, until today, more concern than tranquility. We must not lower our guard in creating formal jobs.
FRANCISCO MIRANDA HAMBURGER
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Twitter: @pachomiranda
