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37% of employers expect to increase the number of workers in the next 12 months

According to the third confidence index prepared by Vistage PeruAlthough there is a recovery in consumption and accelerated progress in the vaccination plan against COVID-19, this has not been enough for business leaders to regain their confidence in the Peruvian economy.

Within the crisis that exists, the hiring of personnel is usually the hardest hit. However, according to the Vistage Peru survey, there is a positive outlook in which only the 16% of business leaders anticipate a staff reduction in the next 12 months. In addition, 37% of employers expect to increase the number of their workers in the same period of time.

CAN SEE

The distrust of businessmen has been decreasing in the third quarter of the year, according to the Vistage Peru confidence index. Confidence had a three point decline, going from 98 to 95 points, which is perceived as a somewhat encouraging outlook considering that the fall between the first and second quarters was 17 points.

“Despite this result, more than half of the entrepreneurs surveyed believe that the profitability of their organizations will increase in the next 12 months. The main challenges for them, in the current scenario, are the advance of the exchange rate and the forecasts for the closing of inflation. It is worth highlighting the recovery of the construction sector, as well as that of restaurants and commerce ”, indicated Ignacio Mealla, Director of Vistage Peru.

Economic and business outlook

Between April and June of this year the 27% of CEOs in Peru were confident of an economic improvement in the next 12 months. However, they reported that in the third quarter the figures fell to 22%. Between July and September, more than half of those surveyed (53%) consider that the Peruvian economy worsened despite growth projections.

CAN SEE

It is important to note that the 29% of business owners, managers and executives do perceive an improvement compared to the previous year when the Peruvian economy was affected by the high contagions of the pandemic.

However, Mealla stressed that there are few expectations that the economy can recover in the coming months. “Conforming 30% who believe that it will be worse than now, while a 48% think that the economic situation will continue to be similar”.

Future investment

The percentage of business leaders who expected to increase investment in the next few 12 months went from 24% in the first quarter to 22% in the second trimester.

“It is relevant that it is the lowest percentage in the course of 2021, given that in the first three months of the year there was a greater optimism of 42%, while in the second trimester a 24% drop in confidence. Despite this, now there are fewer entrepreneurs who consider that investment in fixed assets of their companies is going to decrease, going from 28% in the second quarter to 25% in the third, “said Mealla.

For the executive, the uncertainty surrounding the political context has been a key factor for these figures. On the other hand, the skepticism of business owners and CEOs is an aspect that affects their expectations for the coming months.

“Despite the results, Peruvian entrepreneurs continue to do the work of wondering what they can do better for their businesses and teams, proposing new strategies and executing them,” said the expert.

Secondly, 57% expect their billing to increase in the next 12 months, four points less than last quarter; 31% that remain the same and 12% that fall, six points less compared to the second quarter.

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