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Latin America Investment News on Viva Tropical

Most Nicaraguans are Underemployed

Article Summary:

Nicaragua’s labor market is growing, but many of the positions created are those of underemployment, resulting in a labor force which is residing in a precarious economic position.

Photo Credit: La Prensa Nicaragua

Original Article Text From La Prensa Nicaragua via Google Translate :

Nicaraguan Labor Market Remains Precarious

The good news is that the official numbers indicate that formal employment in Nicaragua is increasing. The news that is not so good, according to an analysis by economist Adolfo Acevedo, is that the country’s labor market is still higher underemployment.

According to the Central Bank of Nicargua (BCN), the number of members of the Nicaraguan Social Security Institute (INSS) grew 9.7 percent between November 2010 and last November.

In the past year the growth rate of the insured was six percent. For 2011 is projected to grow an average of eight percent.

However, according to Acevedo maintains databases Continuous Household Survey, National Institute of Information Development (INID) for 2010, which “strongly deteriorated the quality of employment.” “They have reduced absolute and relative full employment and part-time employment, while massively increased underemployment” he says.

The calculations give information about INID is that underemployment increased from 39.3 percent to 54.3 percent from 2009. Acevedo explained that underemployment is one where the person works 40 hours per week but earn less than the minimum wage and “if I wanted to work more to earn more, he is forced to work less than 40 hours a week.”

Another outstanding feature is that it effectively reduced the population not economically active (NAEP), “because tens of thousands of people of working age, which until then had not been integrated into the labor market,” became part of the economically active population (PEA).

Analyze what happened was that, “the necessity and the possibility of generating income, tens of thousands of students of working age (aged 14) left school.” But it also finds that joined tens of thousands of women who formerly devoted entirely to the housework, went on to develop some type of work activity. “These people entered the labor market is mainly found in precarious jobs,” he says.

Link to Original Article:

From La Prensa Nicaragua

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