Women in Ecuador have less access to employment and earn less than men, according to INEC

The labor situation in the country improved between July and September of this year, compared to the second quarter. The adequate employment rate, according to official statistics, went from 30.9% to 32.7% nationwide. Nevertheless, recovery of formal jobs is slower for women, who also record higher unemployment That men.

The figures confirm the gender gaps in Ecuador; women have more trouble finding work and earn less than men. According to the employment survey of the National Institute of Statistics and Censuses (INEC), in the third quarter of the year the adequate employment rate was 35.6% in men, but in women it was 24.4%. Instead, unemployment in women reached 6.5%, while in men it reached 4%.

Angélica Arguello worked for two years as an accounting assistant in a private company, but was fired in July 2020, as a result of the economic crisis derived from the pandemic. Since then, he has had sporadic income from filing taxes on natural persons. With that money, and some savings, she was able to support her 10-year-old daughter for more than a year.

In September 2021, after applying for various positions, he managed to get a temporary job in the accounting area of ​​a small business. She was hired for four months, until the end of the year.

“It has been very difficult to find something. My current job will only be for a few months, but at least I have a secure salary. It distresses me that next year I will not be able to find a stable job. The (tax) returns I do help me, but I don’t earn much because I don’t have many clients, so I’m seeing what else I can do, ”says Angélica.

Like her, others 63,389 women were able to access a formal job between the second and the third quarter of the year. In the case of men, 110,897 were successful.

Women Economic Forum 2021 will be held in Ecuador

Lack of a suitable job submits 2.4 million women to carry out informal activities to generate income, while another 232,519 are unemployed. Ana Ortiz, 29, has not been able to find a stable position since October last year. Ana is a graphic designer and currently does freelance work. She hopes to join a company to join the Ecuadorian Social Security Institute (IESS) and thus access medical services, and later apply for an unsecured loan.

Although there are more women than men in the country, When it comes to the Economically Active Population (EAP) they are the majority with 4.8 million people, while they register 3.5 million.

The INEC defines that the PEA is made up of people aged 15 and over who work at least one hour in the reference week for the employment survey, or even though they did not work, had a job and are available.

Instead, when it comes to the Economically Inactive Population (PEI) -people aged 15 and over who do not work, do not seek employment and are not available for work-, women far outnumber men. The difference is 1.6 million people.

In PEI there are retired people, who do housework and care without receiving remuneration (housewives), students and people who gave up looking for a job.

For Alexandra Moncada, director of the Care organization in Ecuador, the disadvantage of women in the labor market is mainly due to the increase in poverty. Due to the increase in informal employment, that affects 50% of the entire employed population of the country. In addition, due to the pandemic, women assumed more care tasks, due to the quarantine and closures of care services – nurseries, health centers – due to budget cuts in the public and private sectors.

Also they have been deteriorated working conditions of paid domestic workers (domestic workers), who in some cases had to continue providing their services, but without having a contract, says Moncada based on complaints collected by the organization.

Add that Cultural aspects persist that limit the hiring of women in private companies. There are still inequities, discrimination and gender violence, by employers who are prejudiced against women and their contribution to business.

Women in pandemic: 48% lost their job, 18% had to resign and are now financially dependent on their partner

Another downside is the pay gap. Until last September, the average income for a man with a job was $ 327.6 and for a woman it was $ 279.1, according to the INEC.

Gabriela Borja, the first woman president of the Chamber of Small and Medium Enterprises of Pichincha (Capeipi), highlights that women increase the competitiveness and performance of companies. Gender equity is a benefit and will help accelerate economic reactivation, adds.

The businesswoman emphasizes that mechanisms should be promoted that encourage the increase of adequate employment, not requiring companies to incorporate women only to comply with a law.

Capeipi began to promote among its member companies that hire women who have been victims of violence and are in a situation of vulnerability, since their economic conditions are more complex. The Chamber generates around 36,000 direct jobs, of which 47% are women.

A law to encourage the hiring of women and parental responsibility

On October 19, the Economic Development Commission of the Assembly called for knowledge of the project of Organic Law to promote the work of Women, equal opportunities and the Violet Economy. The proposal was built with several social organizations and was presented by the Government of Lenín Moreno last April.

The bill proposes a tax incentive for companies that create new jobs for women. Employers will be able to deduct taxes up to an additional 150% of salaries and social benefits, depending on the time of permanence of the worker.

On the other hand, it is proposed that the time of paid leave for the birth of a child and for the breastfeeding period can also be shared with the father. In other respects, the law addresses equal pay, fight against employment discrimination, boost education and training.

Unemployment in Ecuador: 6.2% in September 2020; 4.9% in September 2021

Next November 17, The Economic Development Commission will begin the analysis of the bill, for which it will invite representatives of civil society who can contribute ideas, reported Assemblywoman Wilma Andrade (ID), vice president of the table. The legislator called the benefits for companies a magnet to increase the presence of women in more economic activities. The approval of the standard is expected to take place next year.

María José Zambrano, spokeswoman for the Organization and Promotion of the Violet Economy (OPEV), maintains that the fact that the job losses are much higher for women Not only does it impact advances in gender equality, it also reduces the ability of families to compensate for the loss of income, producing a deeper and more persistent recession.

The OPEV prepared a study that concluded that during the pandemic 66% of women lost their jobs; of that percentageAje, 73% depend financially on their partners. The organization emphasizes that the approval of the law is crucial to face the reality of women.

Cecilia Mena, a member of the Red de Economía Violeta and president of the Citizen Action for Democracy (ACD), participated in the development of the project. At its discretion, the Assembly should give priority to the issue, in order to accelerate its implementation. In addition, in a complementary manner, the Government must create mechanisms that expand women’s access to credit in financial institutions.

For Mena, the greatest contribution of the Violet Economy Law is that when making maternity and paternity leave more flexible, as well as granting a tax incentive, the idea that women represent higher economic costs for businesses is being fought. (I)