Cuenca is the city with the best level of adequate employment in Ecuador: 59% of its workers receive an income equal to or greater than the minimum wage and work equal to or more than 40 hours per week. But now Quito is hot on its heels, as the capital’s full employment rate rose significantly in the first quarter of 2023, from 48.5% to 58.1%.

The latest national survey on employment, unemployment and underemployment released by the National Institute of Statistics and Censuses (INEC) shows how unemployment has fallen in the country’s five main cities and what the specific conditions are in each of them. Quito has higher unemployment, for example. In the quarter January-March 2023, the unemployment rate at the national level was 3.8 percent, and in the capital it reached 8.6 percent.

Six actors in the labor market answer: What is missing in Ecuador to create more jobs?

rates National Quito Guayaquil Swimming pool Machala Ambato
global participation 65.5 62.3 60.8 65.8 65.9 72.4
suitable employment 34.9 58.1 47.3 59 43.2 43.5
Underemployment twenty 12.4 16.5 14.2 24.7 20.5
Unemployment 3.8 8.6 3.4 3.5 7.2 4

In Guayaquil there is a small gap between those who work in the private sector and those who do it on their own, but in Ambat most are independent. This is shown by INEC data available in its analysis tool called Visualizadores, which also contains information on average incomes.

Quito

In the capital, the unemployment rate at the end of the first quarter of 2023 is 8.6 percent, which is an improvement from 10.8 percent in the first quarter of last year. While the corresponding employment rate also improved significantly, going from 48.5% to 58.1%.

Here, 52.9% of workers belong to the private sector with an average income of $677.2. 35.4% are self-employed with an average income of $519.9. And 11.7% are from the public sector with an average income of $1,379.6.

Guayaquil

Unemployment in Guayaquil fell from 4.9% to 3.4%, and those who have a suitable job are now more, as this indicator increased from 44.5% to 47.3%. In this city, the independents have a participation close to those who work in the company.

49.8% are employed in the private sector, and 45% belong to the independent category. While there are 5.2 percent of those who work in the public sector. And the average income is very different: private $598.3, independent $385.3 and public $1344.7.

Swimming pool

Of the five cities studied by INEC, Cuenca is the one that had the largest drop in unemployment in the first quarter of 2023. It went from 6.6% to 3.5%. While suitable employment continues to improve. Between January and March 2022, this indicator was 55.4%, and now it is 59%.

47% of workers are employed in the private sector, with an average income of USD 709.5. 42.1% are independent with an average income of $555.9. 11% belong to the public sector with an average income of USD 1428.5.

March in Cuenca argued for work and health

Ambato

The second city where the unemployment rate has fallen the most is Ambato. In the first quarter of 2022, it was 6.3%, and in the first quarter of 2023, it was 4%. Conditions have also improved and it now has an adequate employment rate of 43.5% compared to 42.1% recorded between January and March last year.

In this provincial capital of Tungurahua, the majority are independent, they represent 47.1% of the workforce (with an average income of $458.9), 42.1% are employed in the private sector (with an average income of $655.9) and 10 .8% % belong to the public sector (with an average income of USD 1,479.3).

Insecurity and supply of medicines, among the slogans in Ambat for Labor Day

Machala

Where unemployment fell the least was in Machala, where the rate fell from 7.6% to 7.2%. The corresponding employment also fell here, from 43.8% to 43.2%.

Half of its workers belong to the private sector (50.1%), 41.6% are independent, and 8.3% are in public sector entities, with an average income of $538.2 (private), $390.9 (independent) and $1,272.2 (public).