4 out of every 10 Peruvians are in precarious, poorly paid employment

During the first quarter of this year, the employed population in Metropolitan Lima reached 5 million 359,700 people, according to the INEI.

Months ago, it was possible to recover the total working mass of the capital – which serves as a barometer of the Peruvian reality – compared to the pre-pandemic year and only that which concerns adequate employment – that is, within the law – at 3.1 %: from 3 million 56,900 to 3 million 151,100 people. Statistically It is an increase of 94,200 citizens, but it opens the way to a more auspicious outlook.

However, precarious employment (underemployment) continues to gain ground. There are 2 million 208,600 those who work fewer hours than the average (visible underemployment) or who earn less than the average (invisible).

Compared to 2019, there is an increase of 435,800 people (24.6%); and by branches, the group of workers with fewer weekly hours, but it grew to 1 million 749,700 those who earn less than S/800 per month.

Looking at the rates, the rate of adequate employment is in debt (54.3% compared to 58.1% in 2019) and the rate of underemployment shot up from 33.7% to 38%: that is, 4 out of every 10 Lima employees are develops in poor conditions.

It is worth remembering that the underemployment invisible covers those informal workers who receive less than 50% of the cost of the basic family basketwhich was set by the INEI at S/1,600.

Precariousness prevails

The former vice minister of Employment Promotion Fernando Cuadros Luque assures that the labor market has become precarious, since underemployment by income is significantly higher than before Covid-19: it dragged down more than 603,700 people. Its rate rose from 21.8% to 30.1% of the total underemployed.

The profile of the poorly paid worker

Women participate more in invisible underemployment: 1 million 20,800 compared to 728,900 men; and by level of education, those who work the most are those who have completed secondary school (884,900 people).

Furthermore, mypes are the main niche of this questionable practice: 1 million 371,100 Peruvians are in companies with 1 to 10 workers; And by sectors, those that make their workforce most precarious are services (857,500 people), commerce (585,500 people), manufacturing (212,200 people) and construction (72,800 people).

8 out of every 100 are looking for a job

The unemployment rate reached 7.7% in the first quarter of this year. He INEI summarizes that 8 out of every 100 people are actively looking for work.

Women are the ones most immersed in unemployment (235,000, while men are 212,000).

The keys

• Recovery. The average income in the capital amounted to S/1,979 per month, about S/262 more than in the first quarter of 2019.
• Section. The income gap by gender shows an average of S/591: men receive S/2,067, compared to S/1,527 for women.