487,931 employment contracts were signed in 2021 nationwide

According to data from the Ministry of Labor, throughout the year, the two most frequently registered in the Unified Labor System were indefinite and emerging.

Hiring of staff in 2021 did not stop. In fact it grew in three digits, compared to 2020.

In the 12 months of the year, throughout the country, 487,931 contracts were signed, according to the records of the Ministry of Labor as of December 31, 2021. 120% more than 2020, when it reached 221,542.

Of the amount reached in 2021, 195,642 contracts were signed in the last four months of the year, that is, from September to December. October was the month that registered the most connections in all of 2021, with 54,152.

By provinces, Guayas and Pichincha were the ones that added the most new personnel. For example, in the first, 222,341 were subscribed; while in Pichincha 212,115 contractual figures were reached. These two large provinces are followed by Azuay, Manabí, El Oro and Los Ríos.

By activity

The five activities that most added personnel to their payroll in 2021 were agriculture (includes livestock, forestry and fishing), commerce, manufacturing industries, administrative services activities, and construction.

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These activities, in fact, were also the ones that registered positive performance in their sales until October of last year. For example, the commercial sector exceeded by 1.2% in the first ten months of 2021 what was sold in 2019. Likewise, the manufacturing and agriculture industry.

The shrimp sector, which has been one of the most dynamic in the last year, highlighted the creation, in the last two years, of more than 10,000 direct jobs.

According to the consultancy Adecco, The areas where the most contracts were made, in the last year, were for segments of the commercial field, branches of information technology and human resources.

By type of contract

According to him Ministry of Labor (MDT), until last December 31, of the 487,931 contracts signed under 42 figures authorized in Ecuadorian legislation, the indefinite was the most used. Throughout 2021, 223,213 people were hired under this modality.

After the indefinite, the emergent special contract was another of those that were most registered in the Unified Labor System (SUT) with 83,363.

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This type of contract was included in the Humanitarian Law that is in force since June 22, 2020. The job figure can last one year or less and can be extended for an additional year one time only. In addition, it has a flexible working day since it can be a minimum of 20 hours a week and a maximum of 40, from Monday to Saturday.

In terms of salary payment, this can be daily, weekly, biweekly or monthly. Likewise, the cost per termination is reduced because There is not settlement. Only eviction and proportional benefits such as tickets, reserve funds or vacations are paid.

For labor lawyer Vanessa Velásquez, the registration of this type of contracts is because it is necessary to increase “seasonal” personnel. For this reason, he points out that having more people under this modality “is not due to a reactivation of employment.”

On the other hand, Velásquez explains that the greater use of the emerging and indefinite contract is also sustained in the ignorance, by employers, how to apply other ways to insert staff. “Greater dissemination is required so that employers know that there are various ways to increase their payroll,” he said. (I)

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