My first job: 7 out of 10 young people are precarious

On International Worker’s Day, the numbers show a harsh reality: the first job of Peruvians is not in the vocational field in which they would like to work, to the point that occupational inadequacy grew from 62% to 66% and affects mainly to young people, according to the Ministry of Labor and Employment Promotion (MTPE).

About 7 out of 10 compatriots work in something different from what they studied, whether in the university or technical field.

To this we must add that the first job is given in precarious conditions, either because they do not have access to a full day (visible underemployment) or because they earn less than S/800 monthly (invisible underemployment).

In detail, 65% of young people between 14 and 24 years old are subject to underemployment, according to the National Institute of Statistics and Informatics (see table).

Thus, approximately 7 out of every 10 young Peruvians work in unfavorable conditions—mainly, poorly paid jobs.

As a residual effect of the poor performance of the Peruvian economy in 2023, which brought the worst result in 31 years without counting the pandemic, the universe of underemployed reached 8.2 million compatriots — far from the 4.9 million that were in 2019—, while adequate employment reached 8.9 million people, approximately 500,000 more than in the period before the coronavirus.

Destined for informal or precarious work

It is estimated that between 300,000 and 400,000 young people enter the labor market per year, but they encounter a harsh reality: 71.1% are informal. According to ComexPerú, it is good that the rate has dropped from 74% to 71.1%, but this did not translate into the creation of opportunities in formal employment, and therefore translated into greater vulnerability, unemployment or inactivity.

And, quite apart from the job insecurity already mentioned, there is the problem of informality. There are 12.2 million workers who work in companies that are not duly registered with Sunat and who lack social benefits such as insurance or contributions to their pension fund at the end of their work period.

According to the INEI, the Peruvian youth population amounts to 7.8 million people; and, in the opinion of Hellen Tipian Rodríguez, leader of the Andean zone of the Forge Foundation, nearly 2.6 million young people are in a situation of informal employment and are conditioned by the lack of opportunities and preparation to take on other challenges.

Tipian recalls that informality hits Peruvians between 14 and 24 years old the hardest, since they register a rate of 85.4%. Another key factor is the lack of academic preparation: 22 out of every 100 young people aged 16 and 18 did not finish their secondary education.

On the other hand, focusing on Peruvians who did have the privilege of studying, 43% recognized that their first experience did not coincide with their academic career, according to Dora Pinedo, Head of Marketing at Bumeran Perú, citing the First Employment report of said platform. . Pinedo adds that there are productive sectors in which it is easier to get a job without much experience: gastronomy or tourism are clear examples.

Meanwhile, 11% acknowledged that they work to obtain economic independence or to put into practice their acquired knowledge even if it is not related to their area of ​​study; another 9%, because they need the money regardless of the sector; and 1%, because they were influenced by their family.

How to solve the problem?

The ideal would be for the MTPE to set the tone in the search for solutions, but the governing body desisted from participating in this report.

The Forge Foundation maintains that the educational system is key to reversing this problem because there are currently gaps between the socio-emotional skills developed by young people who finish school compared to what the productive system requires.

“It is important to implement mechanisms to update the state curriculum, since it does not advance like the new labor requirements. It means that in the best of cases the academic training of young people prepares them for the jobs of today, but it is not responding to those of the future,” Tipian noted for La República.

Likewise, he considered it important that the Peruvian State can create bridges of opportunity in the face of the age gap, considering that at 16 years of age one graduates from school and is practically predisposed to job instability due to being denied formal employment.

And, in order to enhance the capabilities of human talent, Dora Pinedo remembers that people are increasingly entering the labor market earlier; Therefore, teams tend to be younger, so it is important to consider age diversity within organizations, since this benefits and contributes a lot to teams and companies.

What does the Peruvian look for in his first job?

29% of centennials – that is, young people between 18 and 24 years old – consider that the hybrid or remote modality is ideal when looking for or accepting a job, according to Bumeran.

It is worth noting that the majority of Peruvians (40%) start their working life between 18 and 20 years old, followed by the age group of 21 to 25 years old (35%).

In addition, those interested in a junior position aspire to an average salary of S/1,877, although, depending on the field they are applying for, the figure varies: up to S/3,900 for international business and S/3,200 for occupational medicine.

For their part, 84% of talent recruiters consider that soft skills are the most requested, but also the least common among applicants: 40% of experts look for profiles that work as a team; 39%, leadership; and 38%, empathy. And, in hard skills, 41% prefer software management and 39%, mastery of new technologies.

Women are the most affected by unemployment

Apart from the cultural flaws that fuel gender gaps at work—such as prejudice against motherhood and extra-working hours at home—unemployment is another thorn in the side of Peruvian women.

In general terms, at the end of 2023, 977,399 compatriots remained unemployed despite actively looking for one. There was an increase of 15.3% compared to 2022, and brought the unemployment rate to 5.4%.

In total, 522,994 women did not find work (+54,065 than in 2022) and their rate went from 5.7% to 6.4%; while, if we compare it with men, we see that here it rose from 5.7% to 6.4% (454,405 men, 75,526 more than in 2022), ComexPerú reports.

It is necessary to specify that female unemployment rates are higher than male unemployment rates in young people aged 14 to 29 (10.7% compared to 7.8%) and in adults aged 30 to 65 (5% compared to 3.2%). ).

According to the INEI, the average income of women is S/1,405 per month, and that of men is S/1,873. The gap in income is S/468.4, and in the group of 14 to 24 years old, Peruvian women register an average earnings of S/999.6, while men earn S/1,240 per month.

Reactions

Dora Pinedo, Head of Marketing at Bumeran

“What attracts talent today? In the case of centennials, young people between 18 and 24 years old, 29% consider that the hybrid or remote modality is what they love most when looking for or accepting a new job.”

Hellen Tipian, Forge Andean Zone leader

“In Peru we have nearly 2.6 million young people in informal labor situations, who are conditioned by the lack of opportunities and preparation to take on other job possibilities.”

The reasons behind employment without rights

Approach. Javier Mujica, labor activist

Within the limited formal employment, 70% of people are linked to a short-term, fixed-term job. This is also precarious employment. Its renewal depends on the will of the employer and, if you demand a raise or seek to join a union to protect your rights, it is not renewed.

We also have a disagreement between the educational offer and the demand for work. There is an abundance of certain occupations and a deficit in others: an oversupply in professions such as lawyers and accountants versus a short demand for highly qualified people in industry or mining.

Another point against is the inability of the market to absorb work with all rights. Informality is related to the weak demand of our internal market, which is made up of consumers—wage earners and pensioners—who only have subsistence income, and, therefore, the capacity to consume, which is the wheel that moves the economy, This is very limited and also generates a very limited supply.

The weakness of the labor inspection system, in the hands of Sunafil, also takes its toll on us. If we had a more effective one, labor informality would be reduced by 20 points, since within the formal sector of the economy there are unregistered workers, that is, informal workers.

The keys

• Benefit. Today it is recognized as a non-working holiday for both the public and private sectors. That is, if the worker works on said date, without substitute rest, he has the right to receive triple payment by law.
• Fighting voice. The CGTP, in response to inflation and low salaries, urges citizens and different organizations today, from 9:00 am in the Campo de Marte.