Andina

Peru has 2nd most efficient labor market among Pacific Alliance countries

13:31 | Lima, Jul. 16.

The economically active population (EAP) in Peru reached 17.8 million, 95% of which are employed. This is one of the reasons Peru has the second most efficient labor market among the Pacific Alliance countries, according to the latest WEF Global Competitiveness Report.

"However, the figure would be more encouraging if it were not for the fact that only 27.5% are employed in the formal sector," KPMG Tax & Legal experts Ahmed Vega and Carla Romero explained.

They prepared a comparative study of some labor aspects of the Pacific Alliance member countries for the 6th Business Summit held in Lima.

Vega said the formal employment rate reflects the pending task to improve the quality of recruitment, necessary to achieve the National Competitiveness and Productivity Policy's goals.

"In this sense, the Pacific Alliance's contribution is very valuable as it allows us to discuss opportunities and share good business and regulatory practices, as in the case of Chile, where the formal employment rate stood at 71%," she noted.

Among other data, the study shows the principal economic activities in which the workforce is engaged in each country.

For instance, 26% of Peru's economically active population is engaged in primary activities like agriculture, fishing, and mining, while 27% and 18% of the labor force in Colombia and Chile, respectively, are engaged in commercial activities. 

In the case of Mexico, 16% of the economically active population is employed in manufacturing.

Pacific Alliance 

The Pacific Alliance —created in 2011— is an integration initiative focused on reducing trade barriers, as well as fostering the free circulation of goods, services, capitals, and people across its territories.

The bloc relies on observer countries and represents the eighth-largest economy in the world.

Nowadays, it has become the axis of a new way of doing business in the continent.

On an annual basis, the Pacific Alliance rotates the pro-tempore presidency among its members. 

Peru handed over the presidency to Chile at the recent summit held in Lima.

(END) MDV/RMB/MVB

Published: 7/16/2019