ILO: labor informality in the Peruvian agricultural sector exceeds 90%

The labor informality in Peru inside of the agricultural sector exceeds 90% and the advance of formal employment in Peru during the last 12 years for this activity has been barely 9.5%, he commented Luis Gonzalez, employment specialist for the Andean Countries Office of the ILO. This occurred during the development of the first day of Agrofest 2023, organized by the Association of Agricultural Producers Guilds of Peru (AGAP).

According to González, there is no homogeneous panorama in labor conditions and productivity within Peruvian agriculture. The expert stressed that, according to data from 2019, in the relationship between cultivation costs and operating costs of the fruit and vegetable subsector, productivity was S/17,370, 60% higher than the productivity of traditional activity.

Challenges and opportunities

One of the main challenges facing agribusiness in labor terms is its location in rural areas, where finding qualified labor is more difficult and informality is more common. However, this situation also provides an opportunity to become a vital source of employment in these areas.

Martín Merino, Hortifrut’s Human Resources manager, highlighted the ability of agribusiness to generate formal employment throughout the country. Comparing it with other sectors, such as finance or retail, which are concentrated in urban areas, Merino commented that agribusiness is located in rural areas with fewer job opportunities and faces the challenge of finding qualified labor.

For his part, Francisco Camino, general manager of the Chincha Fruit Corporation (Fruchincha), mentioned some inherent difficulties in agricultural activity that affect farm workers.

“Workers seek job stability and predictability in their salaries. There are companies that operate only 150 days a year. What options are left for employees in this situation?” Camino questioned.