Metropolitan Lima: half a million adequate jobs have not yet been recovered

In the most faithful reflection of the labor market after two years of the pandemic, the INEI detailed that the employed population in Metropolitan Lima totaled 4,878,200 during December 2021 and February 2022.

Compared to the same period prior to COVID-19 (two years ago), the employed population contracted 2.4%, given that 119,400 jobs still need to be recovered; however, it is in the details that the true ravages of the pandemic are observed.

Thus, the population with adequate employment remains in the red, and drags a drop of -15.5%, to the point that 490,000 jobs remain to be replaced. In total, only 2 million 680,400 citizens function in optimal working conditions. Seen with respect to a year ago, there is an advance of 28.6% or 595,400 people who did recover formal employment, however there are almost half a million inhabitants who cannot get out of the ranks of the informal or unemployed.

Reasons for the disparity

There is a gap between the strength of the large macroeconomic figures at the end of 2021 and the household economy, to the point that while the macro indicators “recovered and went by elevator”, families “go up the stairs and it will take longer to level off”, explained the economist Armando Mendoza.

“Before the pandemic, the labor situation in Peru was already very complicated, with three quarters of the population in informal employment and half that was around the minimum wage. The properly employed agent was already a minority,” he noted.

The specialist estimates that the Peruvian economy must grow this year by 4% for this to translate into an increase in adequate employment, although it will also depend on the dynamic policies executed by the Government. “They must assimilate that the crucial challenge for this year is to return to pre-pandemic levels in employment,” he noted.

More details

Regarding the economic activities that contributed the most employment to the quarter under analysis are the manufacturing sector (116,100 workers), construction (46,900 jobs); trade (88,400) and services (373,600 jobs). At the gender level, compared to the year prior to COVID-19, 21,800 positions held by men and 97,600 by women need to be recovered.

As for average income, it is still S/ 140.50 below pre-pandemic levels, reaching S/ 1,650, when it previously stood at S/ 1,790.50.

A million Peruvians sunk in informality

At the end of 2021, the employed population at the national level reached 17 million 120,100 compatriots; of them 8 million 532,000 had a formal job and 8 million 588,100 worked in the informal sphere or in self-employment.

This last indicator (underemployment), seen with respect to 2019 (pre-pandemic year), means that 1 million 13,500 compatriots joined the ranks of labor informality.

By sectors – always compared to the pre-pandemic level – 131,000 jobs were lost in urban areas and rose by 118,000 in rural areas.

The national unemployment rate in urban areas went from 3.9% in 2019 to 5.7% in 2021; in rural areas it remains at 0.7%.