Construction, trade, and other services drive the increase
Taken from Diario Libre
SANTO DOMINGO – Construction, commerce, and “other services” are the economic activities that have been supporting the recovery of jobs lost due to the effects of the COVID-19 pandemic. However, these jobs have a negative characteristic: they belong to the informal sector.
Informal employment grew by 8.2% between January and March 2020 and the third quarter of this year, according to data from the Central Bank (BC). During that period, informal jobs increased from 2,089,488 to 2,261,674, representing a net increase of 172,186.
The formal sector experienced the opposite situation during the same period. Employment fell from 2,256,583 people to 2,071,957, a reduction of 184,626, representing an 8.2% drop.
President Luis Abinader recently highlighted the recovery of the formal labor market in the country. However, Vice Minister Pavel Isa noted that many of the jobs being created are not high-quality because they belong to the informal sector.
From the first three months of last year until the third quarter of 2021, construction generated 90,733 informal jobs, going from 282,142 to 372,875, an increase in that sector of 32.1%.
The retail sector was the second largest contributor to informal job creation during the period. From the first quarter of 2020 to the third quarter of 2021, the sector grew from 572,004 employees to 629,734, adding 57,730 positions, a 10.1% increase.
Similarly, informality in the "other services" sector rose by 16.4% during the analyzed period.
Similarly, informality in the "other services" sector rose by 16.4% during the analyzed period, going from 283,304 positions to 329,797, showing a net increase of 46,493 informal jobs in that activity.
The industries, transport and communications, financial intermediation and insurance, and electricity and water were the other activities where informal employment also grew since the first quarter of last year.
Industrial activity generated 8,821 informal jobs, equivalent to a 6.7% increase, rising from 131,317 to 140,138. The transportation and communications sector also increased its informal workers, adding 7,883, representing a 3.3% increase between the first three months of 2020 and the third quarter of this year.
Likewise, financial intermediation and insurance added 6,701 informal jobs during the period, rising from 16,709 to 23,410. The electricity and water sector saw the largest percentage increase at 400%, going from zero informal jobs to 400
Only four sectors—agriculture and livestock (-7.1%), hotels, bars, and restaurants (-2.6%), education (-40.5%), and health and social assistance (-52.4%)—managed to reduce informality from the first quarter of 2020 to the period between July and September of this year. Public administration was also included.
In the case of agriculture and livestock, informal jobs in this activity decreased by 24,928; in hotels, bars and restaurants by 4,831; in the education sector by 9,487 and in health and social assistance by 7,332, according to statistics from the Central Bank.
Without social protection
Informal work is an employment relationship that is not subject to national legislation, does not comply with tax payments, does not have social protection coverage and lacks employment-related benefits, according to the International Labour Organization.
