The national poverty rate was reduced from 33% to 27.7%. Extreme poverty also registered a reduction from 15.4% to 10.5%, according to the Enendmu survey
At least 461,394 citizens managed to obtain a suitable job (40 hours of work and with remuneration equivalent to the basic salary or more), in one year. It is that in December 2020 there were some 2,458,516 workers with adequate employment, but by December 2021, this figure rose to 2,919,910.
Thus, according to the National Institute of Statistics and Censuses (INEC), the adequate employment rate in Ecuador had a variation “statistically significant”, between December 2020 and December 2021, going from 30.4% to 33.9%.
It was in the urban sector where the recovery of this type of employment has been most deeply located, since in December 2020 the adequate jobs were in the order of 1,993,494 and at the end of 2021 they were 2,340,774. This recovery is also considered by the INEC as statistically significant.
On the other hand, Unemployment fell in the analyzed period. The indicator went from 4.9% in December 2020 to 4.1% in December 2021. The unemployed went from 396,504 to 356,725, although this figure does not represent a statistically significant variation, as indicated by the INEC.
In rural areas there was a drop in unemployment from 2.7% to 1.8%, which does represent a statistically significant reduction.
Regarding unemployment by gender, the rate was 5% for women and 3.5% for men, which, when compared to the rates registered in December 2020, represents a drop in the unemployment indicator for women, which was 6 .8%. That of men remains practically the same. As soon as to average wage income by gender a recovery is seen: while in December 2020 the average income for males It was from $306.1 in December 2021 reached $320.8. In the case of women the average was $259.1 and goes to $259.5 in the same period, that is, there was practically no variation. If an evaluation is made at the national level, the average salary in December 2020 was in $289.1 and now in December 2021 at $297.1.
Poverty rates fell
Meanwhile, INEC also measured the results of poverty, extreme poverty and inequality in Ecuador. The study establishes that income poverty at the national level in december 2021 was located in 27,7%. A person is considered poor if the per capita income is less than $85.60 per month. While urban poverty is 20.8%; poverty in rural areas is 42.4%. These data are positive if one considers that in December 2020, poverty nationwide was at 33%; that of the urban area in 25.4% and the rural in 20.8%.
Meanwhile, In December 2021, extreme poverty at the national level stands at 10.5%. In this case, a person is considered to be in extreme poverty if they earn $48.24 per month. In the urban area extreme poverty is 5.9% and in the rural area it is 20.3%. They are also better data than those registered in December 2020 when national extreme poverty was at 15.4%. Likewise, extreme urban poverty had been located at 9% and rural poverty at 29.3%.
The Gini index, is located in December 2021 in 0.474 nationally, 0.466 in the urban area, and 0.426 in the rural area. Meanwhile, the indicators for December 2020 were located 0.498 for the measurement at the national level, 0.481 for the urban level and 0.475 for the rural. The Gini index measures inequality and while the indicator is closer to 0 it reflects greater equality, with 0 being perfect equality.
About the topic, Santiago García, president of the Pichicha College of Economists, acknowledged that the figures presented by the INEC are positive indicators, both in terms of employment and poverty. This has been achieved as a result of economic reactivation, which has led the country to grow by 4%. However, it also indicates that from these figures it can be seen that the pandemic generated an economic tragedy in the country. For example, between 2019 and 2020 poverty grew 8 points. This means that at least 1.5 million people fell into poverty. It is that in 2019 there was a poverty of 25% while in 2020 it rose to 33%. Now with the recovery it reaches 27.7%. This figure obviously, we have not yet recovered pre-pandemic levels.
For García, it is important for the economy to grow more strongly in 2022. To this end, it indicates that it is essential that the powers and civil society agree on a consensual agenda. This should include issues such as labor reform; interest rates; reform of the Law of Popular and Solidarity Economy, a consensual commercial agenda and the reform of Social Security. Meanwhile, he considered that the economy will continue to be at the mercy of the ups and downs of the problems generated by the pandemic. In this sense, he considered that the economy is going to suffer in January, due to the restrictive, but necessary, measures taken due to the Omicron strain.
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