Only 9% of the population believe that their working conditions will improve in 2022

Only 9% of the population considers that the situation to find or improve their job will improve in the next three months. And it is that the perception of households is pessimistic in relation to employment and the family economic situation for this 2022, according to the analysis of official data and the results of a survey that appear in a report by the economic consultancy Oikonomics.

That optimistic 9% are up against the 68% who expect their employment situation to be the same and the 22% who think it will be worse. The economic situation of the household is viewed with less expectations: 54% —the majority— believe that it will be worse in these first three months of the year; 42%, which will be the same; and 5%, which will be better. This information corresponds to the National Survey of Employment, Unemployment and Underemployment of the National Institute of Statistics and Censuses (INEC) cited by the consultant.

Meanwhile, 35% of those surveyed by Oikonomics consider that the increase in the unified basic salary (SBU) will have a negative impact on job creation, and 13% mention that the measure is positive for job creation. This perception survey was conducted in 381 households in Quito, between January 11 and 21.

The basic salary rose from $400 to $425 from January 2022. The announcement was made by President Guillermo Lasso last December and was later made official by the National Council of Labor and Salaries.

This despite the fact that the full employment rate increased by almost 4% in December 2021. According to the INEC, this indicator had a “statistically significant” variation between December 2020 and December 2021, going from 30.4% to 33.9%.

The increase in the employment rate was different in each sector. The industry with the greatest increase in the percentage of employed persons was manufacturing, which was also among the five activities with the highest growth in sales between January and November 2021, compared to the same months in 2020.

These are the five fastest growing activities:

1. Accommodation and meals with 47%
2. Mines with 43%
3. Construction with 29%
4. Care and health with 27%
5. Manufacturing with 25%

As of last December, manufacturing represented 11% of employed personnel, 2% more than in 2020. Commerce had 20%, and accommodation and meals 7%; an increase of 1% in both sectors.

While agriculture was the activity with the greatest reduction in the proportion of employed persons. It had a contraction of 7%: it went from 32% reported in 2019 and 2020 to 25% in 2021. It was also one of the activities with the lowest growth in its level of sales, for the same period, reports Oikonomics.

This consultancy identifies the labor market as one of the areas that presents the country with the most challenges this year. This week it held its annual conference “Ecuador 2022: challenges and opportunities”, presented the results of the perception survey to 381 households in the city of Quito, between January 11 and 21, 2022, and analyzed the information from the last survey of employment, unemployment and underemployment of the National Institute of Statistics and Censuses. (I)