Peru President pledges to improve labor sector

19:55 | Paracas (Ica region), Nov. 30.

President Martin Vizcarra on Friday affirmed his Government is committed to finding solutions to problems in the labor sector and thus setting a dynamic framework that enables making the most of workers' potential and talent.

According to the Head of State, a competitive economy requires an efficient labor market that creates channels for employees to find the best place where they can develop their skills. 

"I want to tell all the people here and the business sector as a whole that we will work on these issues, and we will do it through institutional means," the top official expressed. 

The statesman indicated over 50% of micro-sized enterprises in the Inca country are informal, and 70% of workers are employed in the informal sector. 

"This is a challenge we —public and private sector— have to face together," President Vizcarra said. 

In this sense, he confirmed that one of the factors that increase informality rates is high non-wage labor costs, which double or even triple the ones from other Pacific Alliance members (Chile, Colombia, and Mexico). 

"As a consequence, employers prefer temporary contracts that leave workers unprotected and hamper the accumulation of experience, which influences productivity improvement," the Head of State added. 

Likewise, he pointed out his administration's goal is to go from low-productivity informal work without social protection to a scheme that promotes formal employment

"Equal, competitive, and sustainable economic growth is a guideline of my Government's general policy as well as the institutional strengthening for governance," the top official expressed. 

"It is important to promote the generation of formal and high-quality employment —with an emphasis on young people— by creating a political and social consensus to develop in a democratic way," he concluded. 

Remarks were made during his closing speech at CADE-Executives 2018


Publicado: 30/11/2018